Divorce and Business Valuations: The Importance of an Objective Business Appraisal as Part of Determining the Equitable Distribution of Assets

Divorces are emotional. There are many considerations, including custody of children and distribution of assets. For many couples going through a divorce, determining the equitable distribution of assets is complicated when one party owns a privately held business.

In such circumstances, fundamental questions include:

  • What is the value of the business?
  • Who determines the value?
  • How do I know if the valuation is accurate?

When values matter, it is important to obtain a business appraisal from an objective and certified professional. The thorough and detailed report will determine the valuation and will define the portion of the business value to be considered a marital asset.

To manage the cost of a divorce, sometimes the business owner or other spouse does not want to pay for an objective business valuation. This can be a very costly decision.

Recently, two business valuations were prepared in order to determine the business value attributable as a marital asset. The owner of a $3.7 million technology company was going through a divorce and the two business valuations documented what portion of the business value was built prior to the marriage and the value that had been built during the marriage and therefore part of the equitable distribution of assets. Read more…

When Values Matter: If you are going through a divorce, or have a friend or family member going through a divorce – and there is a privately-owned business involved – it is important to get a thorough business valuation prepared by a certified business appraisal professional.

Contact us.