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Business valuation in a divorce

On Behalf of | Aug 3, 2017 | High Asset Divorce

When a Maryland couple gets a divorce, if one or both owns a business or if the two are co-owners, it may be necessary to get a valuation for the business. A skilled valuation analyst can do this.

The couple also needs to decide whether they need a full valuation or a calculation of value. Which one is necessary will depend on how the valuation will be used. The former is more expensive and time-consuming, but it is also more reliable. A full valuation may be the right choice if the information is needed in formal proceedings by a third party such as an arbitrator or a judge. A calculation of value might be sufficient for mediation.

There are other factors to be considered as well. If the couple is cooperating and the atmosphere is not adversarial, it might be possible to work with a calculation of value. However, some businesses are simply complex enough that a full valuation is necessary.

Valuing and dividing a business may be only one complex aspect of a high-asset divorce. For example, even if only one spouse runs the business, the other spouse may be able to claim some of the earnings from the company. If the couple co-owns the company, one may need to buy out the other or they might agree to sell the company altogether. Furthermore, there may be a number of other complicated investments to divide. Another potential difficulty may arise if one person attempts to conceal assets from the other. A person who believes this is happening may want to discuss the possibility and what might be done to address it with an attorney.

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