Most family-owned businesses and partnerships fall under the definition of community property, and must therefore be valued as part of the property division process.
Beyond that general rule, every case is different. Some couples want to see the business kept intact. Where the business predates the marriage, or is wholly owned and operated by one spouse, a breakout or buyout may be in order. Oftentimes, a cooperative reorganization results in the most satisfactory outcome. In some situations, couples are content to sell the business and divide the proceeds between them.
Whatever approach is taken, the valuation is a critical element in the division process. To that end, our lawyers work closely with clients to form a knowledgeable team that can reliably appraise this value.
We weigh every significant factor:
The asset value of the business in the current market, whole or broken up and sold
The asset’s value in relation to prospective earnings
The status of the business (marital vs. nonmarital property)
Contributions made to the business by either party prior to the marriage
Contributions made to the business by both parties during the marriage
Working with forensic experts and financial professionals, we examine and discuss a variety of business valuation methodologies, looking for the approach that is most advantageous to you.
We ensure that the data necessary for an optimal appraisal is available to the court.
Our clients include owners of retail businesses, restaurants and hospitality, manufacturing operations, consultancies, real estate businesses, professional practices (lawyers, accountants, physicians, dentists, etc.) and many other businesses.
We employ many of the same skills used in business valuation to value real property, retirement benefits, jewelry, horses, cars, art and other unique holdings.