Business Valuation

Whether it be your growing business or an established one, it may need to be divided in a divorce.

If a business is marital property, which again is not necessarily determined by the level of contribution one spouse provides to the business, then a value needs to be assigned to the business, and divided. First step, assigning a value.

 

All marital property to be divided during a divorce must have a value assigned to them by the court. Most courts will do everything they can to form as accurate of a value to marital property as possible. In one divorce involving over 40,000 rounds of ammunition in the marital estate, the judge ordered us to find someone to count and value every last bullet. We did, it was rough.

 

One can imagine how valuing a business, especially a new or unique one, would provide some complications. Often the parties will need to hire business valuation experts to apply various valuation methods, whether it be income, cash flow, or market, the court will attempt to determine how much a business would be worth to a willing buyer. In doing so, potential risks to the business, will need to be considered, i.e. client concentration, key employees, patent issues, etc.

 

To speak to Brian directly, email him directly at bmf@faucettlaw.com to schedule your initial consultation.