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How to value a company in a divorce

For those who get divorced in Pennsylvania and throughout the country, their company could be their biggest asset. Therefore, it is important to know how much it is worth to ensure that a fair settlement can be reached when dividing it at the end of the marriage. Knowing how much the company is worth can also be useful if one person has to buy out the other as part of a settlement.

It is critical for business owners to find out what their company should be valued at. There is no room for guessing or estimating; an independent appraiser should be hired to complete this task. This is usually a good idea even if the other spouse is transparent about how much money the company makes, what its liabilities are and what it could make in the future.

An appraiser should have access to any information that he or she needs to make a determination about a company's value. For instance, this person should have access to a company's books to find out the value of real estate holdings or any equipment that it might own. An appraiser will also consider the value of intangible assets such as the brand name and how recognizable it is to its customer base.

In a divorce, all marital property could be eligible to be divided. Typically, this includes a company that was started during the marriage or any portion of a company's appreciation that took place during the marriage. An attorney may be able to help a business owner or that person's spouse learn more about how to value the company for property division purposes. The attorney might also work with forensic accountants or others to create a favorable settlement offer.

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Law Office of
Katrina Luedtke LLC

Law Office of Katrina Luedtke LLC
43 West Middle Street
Gettysburg, PA 17325

Phone: 717-253-9951
Fax: 717-420-2151
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