Business Valuation in a Divorce Can Get Tricky

One very basic human desire is a desire to receive one’s fair share when a division occurs. This desire generally runs very strong for a person when in a divorce. No one wants to be left with less than what they deserve in a divorce-related property division.

There are many different things that can be important when pursuing a fair property division arrangement in a divorce here in Minnesota. One is having a clear idea of what the value of all the different assets that are in the marital estate actually is. It can be very hard to figure out what the fairest way to divide property is without understanding what the property is truly worth. Thus, asset valuation can be a critical step in a divorce.

Some assets are fairly easy to assign a value to and thus provide for fairly straightforward valuation in a divorce. There are other assets, however, that can prove much more challenging when it comes to valuation. One such asset is a closely-held business.

When determining an asset’s value in the divorce context, what one is generally trying to determine is what price the asset would typically go for in a sale situation. This can be a rather difficult thing to determine when it comes to a business, as every business is unique, businesses can take a variety of different forms and a lot of different things can touch on a business’s worth. Some examples of things that can influence a business’ worth are the business’ reputation, the business’ history, what industry the business is in, what earnings capacity the business has, and what the business’ future economic outlook is.

Thus, it can be easy for a person to feel rather stumped in regards to business valuation in a divorce.

Our firm can provide assistance to divorcing individuals when it comes to this often-tricky type of valuation. One tactic we often employ in such valuations is collaborating with financial experts to try to get the full value picture of a business. When it comes to this and all of our property-division-related services, we strive to put our clients in a solid position for a fair property division.