How the Value of Your Business is Determined & Divided
What Happens to Your Business During Divorce?
If you’re facing divorce and own an interest in a business, it’s important to understand how your business will be handled. Whether it be: tool and die, law office, chiropractor, photography, hair salon, manufacturing, grocery store, family farm, or construction business, the value of the business must be determined and divided in a divorce.
Step 1: Hire a Valuation Expert
It is essential your divorce attorney hires a valuation expert for the purposes of divorce. Although the financial aspects of your business may be sensitive, the valuation expert must be allowed to confidentially review financial information about the company. In most cases, the financial information is subject to a protective order to maintain as much confidentiality as possible about the financial status of the business.
Hiring a qualified valuation expert early in the case is an important task of your divorce attorney. There is not just one single method or approach to valuation of a business and, the method for valuation will vary depending on the nature of the business in your case. A valuation date must be selected for the value of the business. This date is usually based upon tax return data and material received during the discovery process.
It’s our business to protect yours.
If you own an interest in a business and are facing divorce, be sure your assets are in good hands. An experienced divorce attorney can help you find the right valuation expert to meet your needs.
If you have questions about how divorce will affect your business, contact Lakeshore Law today.