How can my attorney help with my business valuation during divorce?
A business must be valued properly before it can be divided (if it is divided at all) in a divorce. Typically, a business is created or purchased while married or the business grows considerably while married so that most of it is considered marital property. A business owner needs a divorce attorney to help them adequately value the business. Many problems can crop up. One issue is deciding which method to use to value the business:
- Book value: this considers the value of the business assets minus business liabilities
- Comparable sales: this approach considers how much the company would get on the market by looking at how much equivalent businesses have sold for recently
- Income approach: this approach relies on how much money the business can make for the owners