Complex Business Valuation Issues
In many divorces, a spouse may own his or her own business or a partial interest in a family owned business. The ownership interest of a spouse has a monetary value that can be determined by an expert forensic accountant. In some cases, the business interest is the most valuable asset of the marital estate, and subject to substantial dispute during property division.
At Rosen Hagood, we have decades of experience in working with expert accountants in the valuation of a business interest. The value of the business may vary significantly depending upon the size of the business and the type of business. Valuation methods may include a net asset value review, market value analysis, and/or a capitalization of earnings approach. Shareholder and/or member agreements may affect the value, including buy-out provisions.
If the business is owned and operated predominantly by one spouse or involves a professional practice, the issue of “personal good will” versus “entity good will” is very important and can make a significant difference in how the business is valued. In addition, minority shareholder status is also examined differently in Family Court as opposed to normal valuation practices. Expert business valuations are routinely needed in these cases.
At Rosen Hagood, we have handled cases involving business valuation issues for decades, and we can help you understand this process and look out for your best interests.