September 05 , 2017
Divorce and a Business Valuation unfortunately can greatly impact your negotiations. When you own a business, you will need to understand business value to negotiate a settlement in your divorce. In some circles, it is referred to as a special circumstance. It’s special in part because unlike most things in financial planning, it represents the destruction of a plan rather than the construction of a plan.
There are typically issues of alimony and child support. Property, retirement plans, career assets and a house might have to be valued and divided.
And in some cases, there might even be a family business that has to be valued and divided. When it comes to dividing a family business (or a house for that matter), you typically have three options:
Whoever is ‘in’ the business wants the business valuated a low price, so the other party can walk away with a smaller amount. There are two ways to look proactively at this.
If you are going through a divorce and you don’t have the aforementioned agreements in place, you should hire a “great” valuation specialist. Each party will present the case of how it arrived at the value and how to buy the other party out.