Business Valuations In Divorce
A closely held business can be a lightning rod in divorce. In the eyes of the court, it is a marital asset and source of income. Couples may disagree on the dollar figures or whether one spouse has a legal claim on the business.
The Law Office of Rajeh A. Saadeh, L.L.C., can help you sort out the complexities of business assets and business valuation in the broader context of divorce. We understand the importance of protecting the entity as well as the spousal interest in a way that is satisfactory to both sides.
Is there a business at the center of your divorce?
You need a lawyer who has dealt with these issues successfully. Contact us today to arrange a legal consultation.
What Is It Worth And How Does It Factor In?
There are several key considerations when business assets are caught up in a New Jersey divorce. Attorney Rajeh A. Saadeh has experience dealing with these issues in complex and high-asset divorces. He will sit down with you to thoroughly address the applicable matters:
- Did one spouse run the business or were you both involved?
- Did the ownership interest predate the marriage?
- Does the governing agreement dictate a buyout in the event of one member’s divorce?
- What’s the current market value of the business? The long-term prospects?
- What income does the spouse derive from it?
We typically contract with an accounting firm, whose business valuation expert will look at the company’s books, tax records and other data to determine a value for purposes of divorce. In most cases, it is best to agree on one valuation specialist, but either party can hire its own expert to dispute a valuation that is deemed too high or low. We are prepared to litigate when it is financially worthwhile to fight for a more favorable business valuation.
Finding The Sensible Solution
Once a value is agreed upon, the other spouse is entitled to an equitable share. That spouse must be compensated with other marital assets (such as real estate or lump sum cash) or some other equity consideration (such as higher alimony or relief from joint debt). Rajeh A. Saadeh can advise on the arrangement that will make the best financial sense for you in the aftermath of divorce.
As a last resort, the business may have to be sold off, but liquidation typically reduces the value to both parties. We make every effort to preserve the business and negotiate a favorable trade-off instead of dividing a business and its assets.
For comprehensive handling of your divorce, call our Somerville office at 908-396-8330 to schedule a consultation, or reach us through our online form. We practice in Middlesex County, Somerset County, Hunterdon County, Morris County, Union County and Mercer County.