Pennsylvania couples who are contemplating a divorce may be curious as to how they will deal with a business that is owned by one or both of the parties. This will become important during the property division stage, whether it is dealt with through informal negotiations or handled by a judge.
One way to determine the value of a business is to have a an appraisal done If an arbitrator or a judge needs the information to make a decision, a full valuation may be appropriate. Full valuations are, in general, more reliable. However, the downsides are that they can take more time and are far more costly.
If the couple is open to mediation, a full valuation may not be needed. Instead, a calculation of value can give the couple an idea of the value of the business. This method may be ideal if the couple is able to compromise and work together. However, if the business is more complicated, a full valuation may still be recommended as a calculation of value is more limited and less reliable.
If one person started a business while married, the other person may potentially seek spousal support especially if they assisted with growing the business or with raising the children. A family law attorney may assist with helping the person obtain a full valuation so the court knows how much the business is worth. Depending on the worth of the business, the person may have the ability to request certain marital assets, such as the family home or other real estate if they agree to give the other party the business.