When highly-valuable assets are on the line, divorce can become a thoroughly contentious affair. You need to come prepared to advocate for the issues that matter most to you, particularly when the assets on the table include a business you fully or partially own.
When determining the fate of a business during the division of marital property, the court takes a business valuation into account when deciding how to equitably distribute assets. Even if your soon-to-be ex-spouse is in the process of acquiring a business valuation, it is important to understand why you should obtain your own valuation as well.
The benefit of getting your own business valuation
Getting a second business valuation ensures a lack of bias and that the court receives a valuation that is current and up-to-date. You can also guarantee accuracy by working with an accountant who uses multiple valuation methods, such as an asset valuation method or a relative valuation method. Ultimately, having your own valuation empowers you to negotiate from a stronger position.
Building a case around your business valuation
Your business is likely a very valuable asset and even a vital source of your livelihood, so it stands to reason that a business valuation might form the basis of your asset negotiation strategy. This can be a tool that you and your legal team use to pursue ownership of the business or for introducing a compromise for other assets, especially if both parties are open to divorce mediation.
When discussing a matter so important as the ownership of a business, it is best to not leave anything to chance. Pursuing your own business valuation gives you the best chance at walking away from your divorce with everything you deserve.