If one or both spouses own a business and it was created or grew during the marriage, then the business will likely be considered a marital asset and subject to division by the court. During a divorce, it is not uncommon to see some attorneys and parties undervalue or exaggerate the value of a business, but there are ways to keep this from happening.
You can hire an expert to place a value on the business. Your business will likely be compared to other businesses that are similar to yours. Your revenue history and cash flow may also be evaluated to help determine an accurate market value for your business. The expert will need to view the company books, value the company assets, and potentially interview the business owner to arrive at an accurate valuation supported by competent evidence.
Experts in Court
Sometimes two or more experts are hired to appraise property or to value a business. Each party may have his or her own expert(s) to use for trial purposes. Then, it will be up to the judge to determine whether either expert is credible, and whether the judge can use those appraisals and valuations to place a value on property or a business.
Contact an Experienced Family Law Attorney Today
If you are facing a divorce, or thinking about getting a divorce, and you own a home and/or a business, you may be wondering how such a large asset can be valued and divided. The attorneys at Robison Smith Law can help you understand how assets are divided during a divorce and explain how an appraisal can assist in your equitable distribution case.
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