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.

Does Impartiality Matter in a Business Valuation?

Yes, impartiality is extremely important. In fact, our work is always equitable, fair, and undertaken without bias which is a major reason why our valuations are highly defensible.

Our work is USPAP compliant. The Uniform Standards of Professional Appraisal Practice (USPAP) are promulgated by the Appraisal Standards Board of the Appraisal Foundation which is authorized by Congress.

The Appraisal Foundation, a private, non-profit educational organization and the nation’s foremost authority on the valuation profession, states that an appraiser must perform assignments with impartiality, objectivity, and independence, and without accommodation of personal interests.

In order to promote and preserve the public trust, our appraisal practice observes the highest standards of professional ethics, including an unwavering commitment to impartiality.

When selecting a business appraiser, it is essential to do so with great care as issues affecting valuation can be complex and confusing. Read more…

Louis Pereira has completed the most intensive training in the country and earned the highest designations available in the field of business valuations. There are fewer than 200 Certified Business Appraisers in the country, and Lou Pereira is one of them. In New England, he is one of only a dozen having earned the rigorous designation of Certified Business Appraiser. Read more…

Merrimack Business Appraisers is here to help. As soon as you think you might need a business valuation, contact us so we can discuss your goals and timing.