Valuing And Dividing A Business During Divorce
A divorce involving business owners or professionals can quickly become a drawn out affair when issues related to business valuation and division of interests in a company arise. For this reason, business owners, professionals and their spouses need representation from seasoned family law attorneys who know how to help these matters reach efficient and equitable resolutions.
The Lampe Law Office, LLC, is one of Ohio’s pre-eminent family law firms, and is known as a trusted resource for those going through divorces that require the division of interests in businesses and professional practices. Our attorneys remain on the forefront of emerging topics in the field of family law so that our clients receive the cutting- edge representation they deserve. We work closely with a network of business valuation specialists and other experts to resolve complex situations involving:
- Construction company owners
- Manufacturing company owners
- Restaurant, bar and other establishment owners (including franchise owners/operators)
- Trucking company owners
- Physicians (including surgeons and those in specialized areas of practice)
- Lawyers
- Chiropractors
- Dentists
- Optometrists
In divorces involving these or any other business owners and professionals, our time-tested approach to complex family law issues gives our clients a strong chance of success and the peace of mind that they deserve.
What Are Some Types Of Business Assets In A Divorce?
The following is a breakdown of some business assets that might have to be considered in a divorce when it comes time to calculate the company’s value:
- Tangible property: Inventory, machinery, property and savings
- Intangible property: Reputation, goodwill, community participation and customer relations
- Financial assets: Cash, stocks, accounts receivable, investments, shares and bonds
- Other assets: Franchise rights, membership interests in an LLC, contracts with customers or vendors, lease agreements, business loans, insurance policies
During a divorce, the proper calculation of these kinds of business assets often requires experienced appraisals from professionals. In addition, the company’s liabilities also have to be assessed, since that can affect the “bottom line” value the business may have.
Our attorneys at The Lampe Law Office, LLC, work with business owners, or their spouses to examine the inner workings of a business and determine what assets need to be addressed in the divorce.
How Do You Value A Business In A Divorce?
Once the assets and liabilities have been unearthed, there are several different methods for valuing a business in a divorce. Some of the most common include:
- The income-based approach: This looks at the company’s past performance and current financial health and aims to predict its future income and value. This may be most appropriate for a service-based business with few tangible assets.
- The market-based approach: This compares the business to other, similar businesses that have recently been sold. This method is most useful when there is readily available data on comparable companies.
- The asset-based approach: This looks at the company’s assets minus its liabilities to come up with a value. This is appropriate for asset-heavy companies, like a real estate investment firm.
Since each approach can deliver different results, valuation can become hotly contested in a divorce. Our attorneys help protect your interests by advocating for the approach that will produce the most reliable valuation.
Contact Our Experienced Team Of Divorce Attorneys
We proudly serve clients throughout the surrounding Butler, Clermont, Hamilton, and Warren County regions. Call our firm at 513-889-0400 to schedule a consultation and see how our experience and dedication to legal excellence can benefit you.