Divorce is a challenging journey for many people; however, small business owners have to think about more than just the way that the split is going to impact their personal life. There is a chance that it will also affect their company. If the business is considered marital property, you will likely need to go through the valuation process to determine what needs to happen during the divorce.
Because there is a chance that the company will have to be included in the property division process, you need to know the value. The valuation looks into more than just the revenue of the business, which is helpful when you are trying to balance everything out.
Some people think that they can go off the perceived value of the company; however, this usually isn’t a good idea. When you have the fair market value of the business, you and your ex might be able to negotiate better. You will both know what a suitable buyout is for one spouse to pay for the other one’s part of the business. If you don’t plan on keeping it, the valuation can help during the process to sell it if that’s what you are going to do.
It is imperative that you hire a qualified professional to handle the valuation. Both sides might hire someone to provide a valuation for the company. Putting that information together can help you make an informed decision about the future of the business, and it can give you ideas for how to handle the asset during the property division process.