How business value is determined during a divorce

Starting a business is a goal that many Georgia residents share. In order to be successful, a great deal of time, effort and investment is required. For successful business owners, the thought of losing business assets during a divorce leads to an enormous amount of stress. Understanding how a business is valued during the divorce process can make it easier for both spouses to move forward.

The best way to determine the value of business assets is by hiring an independent expert to complete a business valuation. That process becomes more complex if a business has considerable assets, or multiple different asset types. Having this information in hand, however, can make it easier for spouses to begin the negotiation process.

Valuation begins with a thorough examination of all available financial records. The nature of the business is also taken into consideration, along with current economic conditions. An expert in business valuation will also consider the value of intangible things, including the reputation of the business, social media followers and intellectual property.

Once the valuation is complete, both spouses will receive a copy of a report that outlines the estimated value. If there is a dispute, an additional valuation can be ordered from another financial expert. That information can be critical in structuring divorce negotiations, especially in cases where one Georgia spouse intends to buy out the other's share in the business. As with so many financial matters, making a well-informed decision is the best way to ensure a fair outcome. 

Source: dailyherald.com, "What will happen to my business if I get a divorce?", Miriam Cooper, Sept. 6, 2017

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