Divorcing a Business

In a previous blog, we covered the topic of divorce appraisals. It addressed the importance of appraising a home when the owners of the property are divorcing.

But a divorce when a business is involved is even more complicated. As noted in the article Survey: Divorce is Bad for Business, “If a company is owned by a couple, a divorce can paralyze the business and create divided allegiances among employees and customers. It could also jeopardize a family’s wealth and the owners’ retirements.”

Many of the same principles of a divorce appraisal apply when a divorcing couple owns a business. The business can be sold off and the proceeds divided; all of the joint property can be appraised and divided between the couple according to value; or one party can “buy out” the other.

Irrespective of which option is chosen, one or both parties should order a business valuation that is professional, clearly written, and defensible in court. Contact Present Value LLC for all your appraisal and business valuation needs.

By: Present Value

Tags: divorce, family business
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