A business is often a marital asset that is subject to division in the divorce process. Depending on your state, a marital asset, like a business, will be divided equally or equitably. An equitable division may not be completely 50/50 but it is often pretty close.
In order to divide a business, the court first must know the business’ value. In many instances, the business is the family’s main source of income and the largest marital asset. Therefore, determining the correct value of a business is extremely important. There are multiple approaches to valuing a business and certain valuation methods are better for different types of business. Different business valuation methods include:
If you are going through a divorce and you, or your spouse, own a small business, it is important to have an experienced family law attorney on your side. A divorce attorney skilled in the financial side of the divorce process will work with the business appraiser and ensure that the valuation method chosen provides the most accurate value to the business.
A business is often a marital asset that is subject to division in the divorce process. Depending on your state, a marital asset, like a business, will be divided equally or equitably. An equitable division may not be completely 50/50 but it is often pretty close.
In order to divide a business, the court first must know the business’ value. In many instances, the business is the family’s main source of income and the largest marital asset. Therefore, determining the correct value of a business is extremely important. There are multiple approaches to valuing a business and certain valuation methods are better for different types of business. Different business valuation methods include:
If you are going through a divorce and you, or your spouse, own a small business, it is important to have an experienced family law attorney on your side. A divorce attorney skilled in the financial side of the divorce process will work with the business appraiser and ensure that the valuation method chosen provides the most accurate value to the business.