Issues related to the property a couple owns are often some of the most complex factors that need to be addressed during the divorce process. While multiple types of assets and debts need to be considered during the property division process, determining how to handle ownership of a family business will often be one of the most consequential decisions. Whether a business is considered to be marital property because it was founded after the couple’s marriage or separate property that a spouse owned before getting married, it will be essential to perform a business valuation to determine the value of this asset.
Business Valuation Methods for Divorcing Business Owners
It will be important for both spouses to make sure a business will be handled correctly during their divorce. A family-owned business may be a source of income for one or both spouses, or it may represent a large portion of the couple’s total assets. Even if a business is a separate asset solely owned by one spouse, it will be important to determine the value of this asset to ensure that both spouses have an understanding of their individual financial resources. This can not only ensure that marital property will be divided fairly and equitably, but it may also help determine whether spousal maintenance will be appropriate.
...