One of the most challenging aspects of divorce is the division of assets. Depending on the marriage and the assets accumulated during this time, dividing these fairly between spouses may need to involve professionals, especially when it comes to valuing and dividing a business. With the different approaches to valuation and the aspects of a business that they focus on, the outcome of the valuation may differ substantially from method to method.
In this article, we will outline and explain these different approaches in valuing a business for the purposes of a divorce.
Separate or Marital Interest
The first step in valuing a business for the purpose of divorce is to determine how the value or interest in the business should be split.…Continue reading