What’s Mine and What’s Yours?
Regardless of whether one is in an Equitable Distribution or Community Property jurisdiction, valuing and dividing a marital estate is one of the most difficult aspects of a divorce when a privately owned business is involved, especially where the business was brought into the marriage by one spouse.
In an Equitable Distribution jurisdiction, the concept seems simple: a court identifies, classifies, and values marital assets and liabilities and then divides them between the spouses in an equitable fashion. In a Community Property jurisdiction, the concept seems even more simple: assets or liabilities that either spouse acquired during the marriage are, with certain exceptions, split 50/50 among divorcing spouses.
The Complexities of Business Valuation during Divorce
With regards to business appraisals for divorce purposes, it is essential for a valuation expert to consult with the engaging attorney for guidance on specific state statutes and case law. The identification and definition of that state’s specific standard of value to be used in marital dissolution valuations (e.g., the fair market value standard of value, or a state’s statutory defined standard of value, such as fair value) must be made. Otherwise, adverse consequences could result, such as the valuation being disregarded or excluded by the judge. For instance, depending on state statutes and case law, the definition of value may or may not include discounts for lack of control and/or lack of marketability.
Marital Divorce Services
The Litigated Business Valuation team at FSS has extensive experience assisting our clients with the identification, valuation, and classification of businesses during a divorce.
Our credentialled business valuation experts can assist with:
- Early case assessment
- Discovery assistance
- Valuation consulting and opinions
- Comprehensive valuation reports
- Calculations of value and reports
- Opposing expert valuation report critique
- Opposing expert valuation report rebuttal
- Expert testimony
- Active/passive appreciation analysis
- Tracing analysis
The Litigated Business Valuation team at FSS has extensive experience assisting litigants, attorneys, and triers of fact with marital divorce consulting services related to the identification, valuation, and classification of businesses during a divorce.
To learn more about how we can help you through the marital divorce business valuation process, schedule a call with one of our Litigated Business Valuation experts.
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Download our Two Part Discovery Roadmap for Active Passive Appreciation