Business Valuation in Divorce

Business Valuation in Divorce Cases

When parties to a divorce are business owners, the property division aspect of a marital dissolution must include a reliable business valuation. Doctors who operate their own medical practices, lawyers with private law practices, entrepreneurs who own their own businesses, and other professionals must be prepared to account for all of their income and assets. This process is more complex than determining the income and assets of a salaried employee.

Professional practices and businesses may have value independent of other marital assets. The significance of a business valuation in a divorce case will be affected by a number of factors including:

  • Whether the business was started before or during a marriage
  • How to determine the fair market value or the adjusted book value over time of a business that is just getting off the ground
  • The business valuation techniques that a business appraiser should use before reporting complex calculations to family court on details such as tax liabilities of a private business or brokerage account
  • The effect on business valuation of matters such as earnings capitalization, prior sales, excess earnings

Our attorneys routinely work with forensic accountants who apply sophisticated accounting and financial theories in business valuation cases to determine aspects such as “agreed value” and “intrinsic value”. To serve your case, we translate complex calculations into terms that clients, mediators and judges can understand.

Contact a business valuation attorney at Stiles Ewing Powers PC to discuss the value of your or your spouse’s business and how it is likely to impact a property settlement agreement.

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