Call Today! 719-359-4623

Three tips for business valuation during divorce

Property division is the portion of divorce that addresses how marital assets are split. For those who are in high asset marriages, it is not uncommon for one spouse to either own or have interests in a business. 

If a business is present, the business is generally valued during the divorce process. Three tips to help those that are going through this process and want an idea of how much a business is worth include:

  • Keep two different numbers in mind. In most cases, business assets involve two different categories: business assets and business value. The assets are those owned by the business. This could include the property the business has its operations and any equipment that is used as part of the business. The value of the business, as noted by the business experts at Business.com, is the amount that is gained through the products and services offered by the business.
  • Business value basically means the profit. In simple terms, the value of the business is tied to its profits. Some of the most important figures to determine the profit of the business include the gross profit minus the expenses.
  • Beware of outliers. Additional factors can impact a business’ value. It is important to keep these in mind when attempting to estimate the worth of the business. These can include the business’ strength in the industry, market growth and the customer base.

Although these tips provide some guidance to help get a basic understanding of the worth of a business, they will not result in an accurate, final number. These calculations are very complex and often require the use of a certified accountant. An experienced divorce team, including a divorce attorney, can advocate for your interests during the divorce. This team will work to better ensure you get a fair share of assets, including business interests, in the final divorce agreement. 

No Comments

Leave a comment
Comment Information

Call or Visit Us

The Drexler Law Group, LLC
421 South Tejon St
Ste 200
Colorado Springs, CO 80903

Phone: 719-359-4623
Fax: 719-471-8001
Map & Directions