Will Business Valuation Be Part Of Your Divorce Process?

Dividing assets in a divorce may involve special challenges such a determining the value of one or more businesses. Special considerations may include questions such as:

  • Which spouse provided the original investment in the business(es)
  • When the business was started or when its major assets were acquired (before or during the marriage)
  • Which spouses worked in the business — one or both
  • Whether the business has other partners with vested interests
  • Whether the business was excluded as marital property in a prenuptial or postnuptial agreement
  • Whether the business is profitable or operating in the red

Correct valuation of a business can be challenging to determine because of factors such as outstanding business loans, business downturns and obligations such as invoices, payroll balances and commercial property leases. Considering all the variables that go into accurate appraisal of the worth of a business, it is important to have two types of professionals working for you:

  • A knowledgeable family law attorney with ample experience handling high net worth divorces
  • One or more forensic accountants who can correctly assess the value of a business

I am Jason P. Reese in Canton and I have helped countless clients undergoing divorces, including complexities such as valuation of a business. I am prepared to represent your position as negotiations move forward to determine:

  • Which valuation method to use: a market value, an income value or an asset value
  • How to account for the intangible yet very real "goodwill" factor in the profitability of a business
  • What the business's total value is as of a particular date, to be included in the overall divorce settlement
  • How to keep the business intact if that is the goal — perhaps by offsetting half of its value, awarding one spouse other marital assets in place of this half value (perhaps the marital home, retirement funds, another business, or spousal support to be paid over time)

  • How to divest of business ownership if keeping the business intact is not a necessary objective

In the best case scenario, you and your spouse will arrive at a viable agreement that will result in equitable property division for the divorce and provide direction for the most profitable business objectives. For example, the spouse with the most time and talent invested in the business could, in exchange, start another business to operate for the other spouse in exchange for leaving the business in question intact. This is just one example.

In my family law practice, I am known as a caring, tough divorce attorney. This means I care about my clients' long-term interests and I am not afraid to face and overcome tough challenges. I am ready to help you discover, pursue and ideally, obtain the outcome that will leave you in the best financial position possible, given the circumstances of the business and other factors in your divorce.

Find Out What You Need To Know About Valuing A Business For Divorce — Your Business And Your Divorce

Business valuation is not a job for lawyers who are inexperienced or lack confidence in this area of property division. Learn how The Law Offices of Jason P. Reese LLC can protect your interests in your Ohio divorce. Call 330-754-4861 or send an email inquiry to schedule a consultation.