Business Valuation during Divorce Lawyer in Scottsdale
Helping Clients Fairly Divide All Property
A closely held or family business can be difficult to value and divide in an Arizona divorce. The two issues that many couples face are determining what percentage of a business is community property and how much the business is worth.
At the law firm of Singer Pistiner, PC., our Scottsdale business valuation attorneys have extensive experience helping clients resolve disputes over closely held or family businesses. We offer a free initial consultation to discuss your case.
Is a Business Considered Community Property?
The first issue in dividing a business is determining whether the business is community property, separate property, or a blend of both. The answer isn’t always clear cut. Even if the business was owned prior to marriage, there could be a community interest if the value of the business increased during the marriage. How this community interest is valued is a legally complicated matter that would need to be addressed.
How Are Closely Held or Family Businesses Valued?
Determining the value of a closely held business can be difficult. If the value of the business lies primarily in the owner, the business may not be marketable and may not have value.
Here are some questions to determine the marketability of a family or closely held business:
- Can someone other than the owner operate the business and produce revenue? If the operating spouse is crucial to the operation, the business may have far less marketability and, therefore, far less value.
- Does the business have sufficient good will so that someone else can take it over and derive income? If so, the business may have value.
Business valuation experts typically charge a minimum of $5,000 to value a closely held or family business. Our attorneys can help you assess whether it is worth the expense of obtaining a valuation in your case.
Serving Scottsdale, Tempe, Chandler & Mesa
If you’d like to know more about family business valuation and divorce, we can help you identify the details that will result in the best outcome for your situation. We have decades of experience protecting our clients’ best interests. Whether you are running a small, family-owned business or your enterprise has reached widespread exposure, we know how to help.
Get started on your case today by calling (480) 418-7011.