The Importance of Valuing a Business During a Divorce

If the parties to a divorce own a business, or a share in a business, it is a valuable asset to be considered and should be valued.   In cases where only one spouse works in the business he/she may suggest that they both know its’ value because for years they have lived off the business and there is no reason to spend  money hiring experts.     What a business “throws off,” or what the parties have been taking out of the business, however, even if accurate, is only one aspect of its worth– not its true value.   For example a dentist may bring home a certain amount each month; but the dental practice has value  extrinsic to the dentist’s salary.  There is value in the practice  client base, its equipment, its reputation, its’ location, perhaps its’ building—and a certain amount of the value of the business may be based upon the  personal “good will” and…

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