Considerations about money and property are frequently among the most challenging aspects of divorce. Depending on the contents of your marital estate, dividing your assets can be both very complicated and profoundly emotional.
At the Andrew Cores Family Law Group, we are aware of how challenging divorces may be when a company or professional practice is considered to be a component of the marital estate. If you are getting divorced, it is important to understand the process of business valuation and your rights to your marital assets.
Three Ways to Value Your Business During a Divorce
There is no one-size-fits-all method for valuing a business during a divorce, and an experienced lawyer and forensic accountant will often select one of the following three approaches:
The Income Approach - In this situation, an appraiser gathers your profit-and-loss records, tax returns, and any client contracts to ascertain your recent profits and predict what you will likely make in the future.
The Asset Approach - As the name implies, this strategy takes advantage of the assets, receivables, and enterprise goodwill of your company, which is the perceived worth of your name or brand among consumers. This third component is also tough to evaluate, which is why you need experienced professionals in their fields to assist you in doing so.
You must determine the value of the business interests that will be included in the marital estate in order to guarantee that the entire property division procedure is carried out fairly and in compliance with the law. In fact, even if the firm is non-marital, a business appraisal is necessary since the personal assets of each spouse must also be considered.
How to Choose Which Method to Value Your Business
Depending on the sort of business and the purpose for the assessment, what works for one firm may not work well for another, and what may have been a valid business valuation five years ago may not be valid now. You must consider your real business, its size, if and how quickly it is growing, its profitability, and of course, the reason you want the valuation.
Contact a Dupage County Business Valuation Divorce Lawyer
If you are concerned about how your business will be divided during your divorce, you need a Wheaton business valuation divorce attorney who will help you protect your rights to your marital property. Call Andrew Cores Family Law Group at 630-871-1002 to schedule your free consultation to learn how we can help.