Business Valuation for Divorce

Expert business valuation services for divorce proceedings. Fair, accurate, and court-ready valuations that protect your interests and support equitable asset division.

Business valuation requirements in divorce vary by jurisdiction. Consult local family law requirements. All valuations prepared in accordance with USPAP standards and designed to meet FRE 702 admissibility requirements.
CVA Certified
Court Qualified
FRE 702 Compliant

Why Business Valuation Matters in Divorce

Business assets are often the largest marital asset requiring division. An accurate valuation ensures fair distribution and protects both parties' financial future.

Asset Protection

Accurate valuation protects against undervaluation or overvaluation that could result in unfair distribution of marital assets.

Equitable Distribution

Professional valuation ensures both parties receive their fair share based on the true market value of business assets.

Legal Compliance

Court-ready reports that meet legal standards and can withstand scrutiny in family court proceedings.

Common Divorce Valuation Scenarios

Professional Practices

Medical, dental, legal, and consulting practices require specialized valuation approaches.

  • • Personal vs. enterprise goodwill analysis
  • • Non-compete agreement implications
  • • License and certification value
  • • Patient/client relationship transferability
Family-Owned Businesses

Multi-generational businesses with complex ownership structures and family involvement.

  • • Minority vs. majority interest valuation
  • • Marketability and control discounts
  • • Family member compensation analysis
  • • Succession planning implications
Small Business Operations

Closely-held corporations, partnerships, and LLCs with active spouse involvement.

  • • Owner compensation normalization
  • • Personal vs. business expense separation
  • • Key person dependency assessment
  • • Operating vs. investment assets
Investment Holdings

Real estate investments, securities portfolios, and passive business interests.

  • • Fair market value vs. liquidation value
  • • Restricted stock and options
  • • Partnership interest valuations
  • • Tax basis and holding period considerations

Critical Issues in Divorce Valuations

Valuation Date Selection

The valuation date can significantly impact business value and varies by jurisdiction:

Separation Date

Most common - reflects value when marital economic partnership ended.

Filing Date

Some jurisdictions use date of divorce petition filing.

Trial Date

Captures most current value but may include post-separation changes.

Marital vs. Separate Property

Determining which portion of business value constitutes marital property requires careful analysis:

Marital Property Factors

  • • Business appreciation during marriage
  • • Marital funds invested in business
  • • Spouse labor and expertise contributions
  • • Active vs. passive appreciation

Separate Property Factors

  • • Pre-marital business value
  • • Inherited or gifted interests
  • • Passive market appreciation
  • • Non-marital fund contributions
Double-Dipping Avoidance

Critical issue in divorce valuations - avoiding counting the same economic benefit twice:

Example: If business value includes owner's future earnings capacity, alimony based on those same earnings would constitute double-dipping. Our valuations clearly distinguish between business asset value and personal earning capacity.

Learn more about common valuation mistakes →

Our Divorce Valuation Process

1

Initial Consultation & Case Assessment

We review case specifics, jurisdictional requirements, and valuation date considerations to develop an appropriate approach.

2

Document Collection & Analysis

Comprehensive review of financial records, tax returns, business documents, and relevant agreements spanning multiple years.

3

Financial Normalization

Adjustment of financial statements for personal expenses, extraordinary items, and owner compensation to reflect economic reality.

4

Valuation Analysis

Application of appropriate valuation methodologies including income, market, and asset approaches as applicable.

5

Report Preparation & Delivery

Comprehensive written report with detailed analysis, methodology explanation, and conclusions suitable for court submission.

What's Included
Court-ready valuation report
One-hour consultation with legal counsel
Electronic report delivery
FRE 702 compliant methodology
Detailed work papers and exhibits
Professional credentials (CVA)

Optional Services

  • • Expert testimony and deposition
  • • Rebuttal report preparation
  • • Settlement conference support
  • • Discovery assistance

Frequently Asked Questions

How long does a divorce valuation take?

Typical timeframe is 3-6 weeks from receipt of all necessary documents. Complex cases or businesses may require additional time. We provide realistic timelines during initial consultation.

What documents do I need to provide?

Financial statements for 3-5 years, tax returns, buy-sell agreements, operating agreements, bank statements, and any prior valuations. We provide a comprehensive document request list.

Do you provide expert testimony?

Yes, we provide deposition and trial testimony as needed. All reports are prepared with potential court appearance in mind and meet FRE 702 standards for expert witness testimony.

How do you handle jurisdictional differences?

We adapt our methodology to meet specific state requirements regarding valuation date, standard of value, and treatment of goodwill. Experience across multiple jurisdictions ensures compliance.

Can you work with both parties' attorneys?

We can serve as a neutral expert when both parties agree. However, most often we're retained by one party's counsel to provide advocacy-oriented expert witness services.

What if the business has multiple owners?

We analyze ownership structure and apply appropriate discounts for minority interest and lack of marketability. See our guide on valuation discounts.

Why Choose Our Divorce Valuation Services

Proven Expertise

Certified Valuation Analyst (CVA) with extensive experience in divorce valuations across multiple jurisdictions and business types.

Court-Ready Reports

All valuations prepared to withstand legal scrutiny and meet FRE 702 requirements for expert witness testimony in family court.

Collaborative Approach

We work closely with legal counsel to understand case strategy and provide valuations that support your client's best interests.

Get Started Today

Protect your client's interests with expert business valuation services. Contact us for a free initial consultation to discuss your divorce valuation needs.

Need Expert Business Valuation for Your Divorce Case?

Get accurate, defensible valuations that protect your client's interests. Our court-ready reports and expert testimony support fair asset division in divorce proceedings.