Berman & Asbel, LLP

Valuing a business in a divorce case

If a Pennsylvania couple is getting a divorce and one or both spouses owns a business, then they might need to figure out how to divide that asset. In order to do this, it is necessary to find out how much the business is worth. The first step is for the couple to consider is how accurate a valuation they need and how much money and time they are willing to spend on getting those results.

If the information has been requested for an arbitrator or a judge, they might have little choice but to do a full valuation. This is the more expensive and time-consuming option, but it is also more accurate. If the business is particularly complex, a full valuation might also be necessary.

However, if the couple is communicating and negotiating effectively, they might be able to work with a calculation of value. This is a less precise but also cheaper and quicker option. A valuation analyst can do either, and a couple will need to decide which works better for them based on their circumstances.

As is the case with many aspects of divorce, property division may go more smoothly if the couple is able to cooperate. However, problems may arise such as a prenuptial agreement that one party wants to challenge, an attempt to hide assets or a disagreement about how the business should be divided. The situation may be particularly complex if both people own the company. Their options might include continuing to run the business together or selling it and splitting the proceeds. They might want to consult with their respective family law attorneys to see how best to resolve these matters.

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