A comprehensive guide for family law attorneys navigating business asset division. Learn key valuation methodologies, common challenges, and strategies for protecting your client's interests.
Always consult local requirements and precedents. Our valuation experts understand jurisdictional differences and can adapt methodologies accordingly.
The valuation date can significantly impact business value. Common dates include separation, filing, or trial date. Understanding valuation standards in each jurisdiction is critical.
Standards of value vary by state statute and case law. While many jurisdictions require fair market value, others may use fair value, investment value, or intrinsic value. Consult local requirements and precedents.
Determining which portion of business value is marital property versus separate property requires careful analysis of contributions and timing.
When one spouse is essential to business operations, this creates valuation complexity:
Important: The treatment of personal vs. enterprise goodwill varies significantly by state. Some states exclude personal goodwill from marital assets, while others include it.
Small business financial statements often require normalization:
Best for businesses with predictable cash flows and growth patterns.
Suitable for mature businesses with stable earnings. Learn more about valuation methods.
Compares to publicly traded companies in similar industries.
Uses actual sales of similar businesses.
Note: Lack of marketability and minority interest discounts may or may not apply in divorce contexts depending on jurisdiction.
Request financial records for 3-5 years, including tax returns, financial statements, and bank records.
Select credentialed appraisers (ASA, ABV, CVA) with divorce valuation experience and knowledge of your state's specific requirements. Ensure your expert can articulate how their methodology meets FRE 702's reliability requirements and survive Daubert challenges.
Evaluate liquidity constraints and tax consequences of different distribution scenarios. Work with qualified tax advisors to evaluate structuring options.
Minority interest and marketability discounts can significantly impact value in divorce. See our guide to valuation discounts.
Clearly establish each spouse's role in business operations and decision-making.
Our reports are structured to withstand Daubert challenges and FRE 702 scrutiny. We provide clear methodology explanations, identify all assumptions, and demonstrate the reliable application of accepted valuation principles.
Note: All litigation support services require advance retainer and are billed at specified hourly rates. Court appearance fees are due regardless of whether testimony occurs.
Work with a credentialed valuator who understands the unique challenges of divorce valuations. Get accurate, defensible opinions that protect your client's interests and meet FRE 702 standards.