It’s important to have an expert who can help you make sure your on level footing. Don’t assume the business is worth nothing or that it is worth an unattainable value. Ownership in a privately-held business can cause divorce to be complicated because of the added cost to assess:
- Whether the business is a separate asset or just a job
- What personal expenses are co-mingled with business expenses
- Whether or not the business is being used to divert assets from the marital estate
- What the value of a business or an interest in a holding company that is not publicly traded
Regardless of the resulting value of the business or business interest, these variables can cause valuation in divorce to be complicated and contested.
While all business valuations require experienced professionals, valuations involving divorce present potential litigation and legal issues. Therefore, if your divorce involves the valuation of a business you should seek assistance from a qualified and experienced professional.
Business valuation in divorce is complicated by a number of important factors. It is critical to work with a valuation professional who understands these factors and can help you understand them. Any valuation expert that you work with should have the primary objective of helping you understand their work throughout the process – and allow you to make decisions about how to proceed and provide your input and knowledge about the business value. Your participation in the process and your understanding of the value and the key variables that drive the value will help you make good decisions.
At VFP, our valuations are backed by our extensive qualifications and experience. We have handled many divorce cases and worked with some of the best divorce lawyers and mediators.
What About Joint Valuations?
In some cases, we are hired to provide a valuation for one party in the divorce. In other cases, the attorneys collaborate and approach us to perform a joint valuation. In a joint valuation, we are engaged by both parties to the divorce and both parties agree to be bound by our opinion of value for the assets under consideration.
Click here to see our blogs on: What is Valuation?, What Makes us Different?, What We Value, and Understanding the Valuation Process.