Situation
A couple were getting a divorce in Massachusetts and a business valuation was needed of the husband’s fishing business as an input to the marital balance sheet to settle the divorce.
Lou Pereira, President of Merrimack Business Appraisers, was referred by the divorce attorney of the spouse who did not own the business to prepare the needed business valuation.
Merrimack Business Appraisers’ Approach
Some businesses are more straight forward than others to develop the business valuation. Pereira classifies fishing businesses as a bit more unusual and challenging. This fishing business, based in New Jersey, included several fishing licenses, the crew, and a fishing boat.
As is common in the case of a divorce, it often takes months (if not years) to receive all the necessary inputs to prepare a thorough business valuation for any business. This was so in this case, it took time to be able to move forward with the requisite inputs to develop the business valuation.
Valuation Outcome
Certified business appraiser Lou Pereira developed the valuation of the fishing business, and this valuation calculation served as an input to the marital balance sheet that would determine the divorce settlement for Pereira’s client, the non-business owner spouse, and the spouse owning the business. Typically, when there is a business involved, efforts are made to determine asset allocations without having to sell the business.
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