When a Pennsylvania business owner gets divorced, they will need to consider how the separation could impact their company. If one spouse operates it as a sole proprietorship, the other partner may ask for a portion of its value in a divorce. If the company is operated as a partnership, it may be necessary to buy the other spouse out. In either scenario, a business owner should have a good idea of how much it is worth today and going forward.
Knowing how much the company is worth can make it easier to determine what a spouse should receive in a divorce settlement. To get an accurate valuation, have an independent source appraise it. This is a good idea even if the other spouse is cooperative during the process. Having a professional take a look at the company’s assets and liabilities could reveal secrets that a spouse may be hiding.
These secrets could include deferred compensation or inflating the company’s expenses to make it look less profitable than it really is. There are many items that may determine the value of an organization. For instance, a company could be worth more if it has a strong brand and goodwill among its customers. If the company owns land or real estate, that could result in a higher valuation.
When dividing an asset in a divorce, there are many issues to consider. For example, one may have to forecast the asset’s value before and after taxes. An attorney or financial professional may be able to help appraise an asset’s current and potential future value for property division purposes.