Rancho Cucamonga Business Valuation Lawyer
Why do you need a Rancho Cucamonga Business Valuation Lawyer
Most people do not realize how tangled their lives become when they get married.
In addition to this, many married couples tend to run businesses together. They are joint partners and get much of their income from the same source.
When it comes time to divorce, they have to separate all the assets of the business in addition to all their personal assets.
At a time like this, you need a business valuation lawyer who knows all the ins and outs of both the family law side of things and the business legalities.
How a Business Valuation Lawyer in Rancho Cucamonga Approaches Your Case
When the courts decide to separate property, they have very wide latitude. This means things can go your way, your ex-spouse’s way, or be split down the middle.
In the case of a business, the court will have to assign a value to any holdings you or your spouse may have. They will give a value to the businesses you own so these can be split in a fair manner between the two separate parties.
To make sure you put the best foot forward and are not losing a large chunk of your income or equity, you want to have a business valuation lawyer deal with appraisals and property disbursement.
Estimating the Business Worth with your Business Valuation Lawyer
The first step to dividing the assets of the business is to find out how much the business is valued at. For this, there are a number of things the court will look at.
- Tangible property: This includes things like office space that is owned, office equipment, any stocks or merchandise on hand, and any machinery or other equipment.
- Intangible property: This can be slightly trickier and needs the expert services of a business divorce attorney because it includes things like goodwill customer base, patents, trademarks, etc.
- How much does the business make? This is what business owners call income. The court will look at how much the business actually makes in cash received from services rendered, goods sold, investment income, or royalties collected.
- How much does the business spend? This includes the overhead expense of the business, the COGS or cost of goods sold, and other expenses that are necessary to keep the business running like rent or utilities
Different Ways a Business Valuation Lawyer Analyzes Your Business
There are many ways a business valuation lawyer will analyze your business. Some prefer to use a market or earnings approach while others use a more traditional book value method.
Earnings or market approach: This method of evaluating your business looks at the earning potential the company has from the point of view of what an investor or purchaser might value the company at.
Book Value: A book value approached is based on the assets and liabilities of the company minus any depreciation.
For help, call The Law Offices of Laurence J. Brock at 909-466-7661 or get in touch with us online. We can give you case-specific legal advice and help ensure that you are represented fairly in court during your divorce.