Jump to Navigation

3 steps to valuing your business during divorce

If you own a family business and know divorce is in the near future, you might be wondering what is going to happen to the company. The personal challenges for your emotions and finances are already enough to cause inner turmoil, so what should you do about the business? The most important step to take is getting a business valuation.

An accurate picture of the family business and its assets will make the property division process go smoother. Here are some important things to keep in mind as you value your business.

1. Find an appraiser

First, you have to find the right person to determine the value of your business. You might look for a:

  • Financial analyst
  • Certified public accountant
  • Business appraiser
  • Business broker

The exact person you choose will depend on your preferences and the advice of your attorney. Typically, a professional business appraiser is the right choice.

2. Know the options for determining value

There are various ways to value a business. The standard varies widely, and you should be involved in choosing the right one. Have discussions with the valuation expert and your attorney. Make sure you understand what investment value, fair market value and intrinsic value all mean.

3. Decide what to do with the business

After you have a clear picture of the worth of the family business, it is time to decide what to do with it. You and your spouse could continue to run the company together, but this is difficult even in the most amicable situations. You could also decide to sell the business and split the proceeds. Perhaps you want to buy-out your spouse’s half of the business.

Dividing business assets and figuring out what to do with the company after your divorce can seem mind boggling, but you can find a solution when you have the right financial and legal professionals helping you.

No Comments

Leave a comment
Comment Information
Subscribe to this blog's feed

Attorney Christine K. Lincoln

Christine K. Lincoln offers sound counsel and legal services to protect clients and their families facing divorce and other family disputes.

She will take the time to understand your individual needs and develop a comprehensive solution to protect your rights and interests.

Email Us

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Location

The Lincoln Law Firm, PLLC
12777 Jones Road, Suite 475
Houston, TX 77070
Phone: 281-970-9005
Fax: 832-645-7666
Map and Directions

Texas Divorce Attorneys, Mental Health Professionals, & Financial Planners
FindLaw Network