It is not uncommon, these days, for people to own their own business. Whether a small mom and pop shop or a large law practice, people are choosing to own their own business as opposed to working for other people. Some of these businesses can be the main source of income for you and your family and when you have decided to divorce, can be an entirely different headache. If the business was started during the course of a marriage, then you may have rights to some of the profits and liabilities that the business brought in. However, if the business was started before the course of a marriage, then the value of a business as it pertains to a divorce can become a lot more complicated. Because of this, it is important to understand business valuation in your divorce. If you or a loved one is seeking a divorce and you or your spouse owns your own business, contact an experienced North Carolina divorce attorney to help you determine the best strategies for your case.
Business Valuation in a Divorce
If you or your spouse owns a business and are in the middle of a divorce, a business valuation may be in your best interest. A business valuation, often conducted by an appraiser, places a value on the business for the purpose of the divorce and dividing assets and debts. To not be confused, business valuations are not done in every situation where one spouse owns a business, but instead, is conducted in cases where a business is worth a substantial amount of money. These businesses often include technology practices, accounting firms, dental practices, and large farming operations, to name a few.
A business valuation is typically a document that contains a summary of the business that gives the appraiser a value of what the business is worth. When you are seeking the value of a business, it is important to first hire an experienced appraiser that can review all of the financials and inner-workings of the business to determine its value. Because judges typically rely heavily on this information, it is important to seek an appraiser who has experience in testifying in court. Documents that can be used to determine the value of a business are: tax returns; general ledgers; checking and savings accounts; business plans; marketing materials; as well as financial statements. If conducted correctly, a business valuation can be used in mediation or in court and can help determine the dividing assets and debts as it pertains to a divorce.
Need Legal Advice?
Divorce, itself, is complicated. However, when you or your spouse own your own business, the prospect of divorce and the value of the business can become a more complicated process. There are many factors in determining the value of a business and this can include when the business came to fruition. Because of this, it is important to seek legal representation and advice if you find yourself in this situation. If you or a loved one is seeking a divorce and there is a business involved, contact an experienced North Carolina attorney at The Law Office of Dustin S. McCrary to help you determine the best strategies for your situation. Contact our office today! We are here to help!