Divorce Cases

Divorce proceedings are often complicated by the ownership of a closely held business. In order to determine a fair and equitable distribution of martial assets the value of the business must first be known. A business valuation is often an integral part of both contentious and mediated divorce cases.

Hypothetical scenarios that require a business valuation

In a contentious divorce, one spouse is highly involved in the business and claims that the business is worth very little. The other spouse has not been active in the business and worries that he is being treated unfairly since he knows little about the business.  A business valuation may be useful in this situation, ensuring that the value of the business has been fairly represented.

Both spouses in a divorce wish to quickly and efficiently divide the marital assets. They are involved in a mediated divorce and believe that the best solution is to jointly hire an appraiser to determine the fair market value of their business assets. Obtaining a business valuation from an independent party will allow the divorce proceedings to proceed smoothly without incurring excessive fees.

Special considerations for divorce valuations:
As appraisers, we are professionally and legally bound to remain fair and objective when developing a business valuation, regardless of which spouse has hired us. The purpose of our report is to determine the fair market value of the business, enabling the court to determine a fair and equitable distribution of marital assets.

It is for that very reason that both spouses may choose to jointly hire a single appraiser. Considerable time and money can be saved by hiring a single appraiser rather than each spouse independently hiring an appraiser.

Unfortunately, not all divorces can be easily mediated. At times, one spouse may be more involved or know more about the business than the other spouse.  Without a qualified business valuation, the other spouse may have no other option but to accept what the other spouse has stated at face value.  In such cases, it is typically best to have a qualified appraiser examine the business and determine its fair market value.

In such contentious cases, it is important to hire a business appraiser that has had experience with the court appearances, expert witness testimony and other litigation support services that are necessary in divorce proceedings. Our business valuation professions hold senior accreditations and have extensive experience testifying in contentious divorce proceedings.