In any case involving business ownership, whether the business venture began during the marriage or before the marriage, leads to business valuation for divorce and distribution issues. This is particularly complicated if the business is privately held by a few owners.
Sometimes a portion or the entire business interest has been gifted from a family member. The divorce lawyer needs to identify four specific business values:
- at marriage
- at receipt of the gift
- at time of separation
- the current value
In many instances the basis for business valuation is controversial and subject to challenge. The divorce lawyer will ask the client to hire a business evaluator. Client cooperation is key to efficiently and comprehensively completing the calculation of values as needed. The non-business owner client often has unique insights to share with the evaluator.
In a case where the spouse has business income due to ownership, it may be considered income from an asset, not income available for support. Your divorce attorney will assess the most favorable treatment of the business as an asset and as a source for future support for each client. Call us for assistance today at 610.275.0700.