Business Valuation in Divorce
When dividing property in a divorce, one of the most difficult aspects can be dividing closely-held businesses. Often, divorcing couples have invested many years and significant funds and assets in their businesses. They worry how to compensate the other spouse if he or she keeps his or her business ownership or that the marital value placed on the business will be unreasonable and/or unaffordable.
At Mack & Santana Law Offices, P.C., we understand the emotions and the complexity of the financial issues that often come with divorces involving businesses. Our lawyers take actions we believe are necessary to protect your rights and your financial interests during the property division process.
Divorce Involving Business Ownership
Knowing how much your business is worth is the first step to protecting your interests. We often work with highly regarded financial experts, such as certified public accountants and appraisers, for business valuation matters. These experts are experienced in valuing diverse business types, including limited liability companies (LLCs), limited liability partnerships (LLPs), S-corporations, C-corporations and general partnerships.
Experts consider a series of factors when determining the fair market value of a business. Generally, the fair market value is the price at which the property would change hands between a willing buyer and willing seller, if neither one was forced to buy or sell and both had reasonable knowledge of the relevant facts.
Factors that affect business valuation in addition to the method of valuation selected include:
- The nature and history of the business since the beginning
- The economic outlook for the business and for its industry
- The earnings capacity of the business
- Whether the business has “goodwill,” a good reputation in the community, or other intangible values
- The book value of business stock, if applicable
- The dividend paying capacity of the business
- Sales of the stock and the size of the block of the stock to be valued
- Market price of stocks of other same or similar business having their stocks traded in a free and open market
Our experts gather and analyze business data and perform a valuation analysis. As experienced attorneys, we take the analysis provided and use it to our client’s benefit in negotiations and in court.
Contact a Minnesota High Asset Divorce Attorney
Contact Mack & Santana Law Offices, P.C., by calling our Minneapolis law office at 612-426-7141 or our Prior Lake law office at 952-314-2617 to speak with our Minneapolis divorce and business valuation attorneys.