Rialto Business Valuation Lawyer
Make certain that you don’t go into a divorce proceeding without first finding out what your business is worth. Get the help you need by working with a Rialto business valuation lawyer.
Do you or your spouse own a business? If you are getting divorced, it is important to know what the value of that business is. Otherwise, it can’t be divided properly, and you could come out of the divorce with less than you deserve. To that end, a valuation must be completed, and a Rialto business valuation lawyer from the Law Office of Laurence J. Brock can help.
Why Should I Have the Business Valued
If either you or your spouse arbitrarily place a value on the business, the other is likely to contest it. This can lead to a great deal of back-and-forth with neither party being satisfied.
Having the business valued by a third-party attorney makes it possible to understand the true value of the business and for a judge to take that valuation on face value when making a ruling.
Once the value has been established, it is possible for the business to be properly divided.
How Do You Value a Business?
There are two main ways to approach a business valuation. One is based on the assets of the company. The other is based on profits multiplied by a number of years. Sometimes, the two approaches are combined, but this depends on the type of business.
Generally speaking, certain things will need to be reviewed, including the following items:
- Business tax returns
- Bank statements
- Investment statements
- Inventory lists
- Accounts receivable
- Accounts payable
- Equipment list
- Formation documents and corporate agreements
Additionally, your Rialto business valuation lawyer may order appraisals of equipment or properties owned by the company. When a company owns patents, a patent attorney may also be brought in to determine their value.
Once this information has been gathered, certified, and reviewed, an official valuation can be made.
How Will the Business Be Divided?
Since you can’t exactly split the company in half, there are several ways to approach the division of a business:
- Full Buy Out – This is the easiest option. The party who wants to keep the business can buy out the other, either in a lump sum or by making payments. In this case, a loan may be obtained to complete the acquisition, but the party being bought out would not be liable for any interest on the loan.
- Dividing the Company – If a company has more than one division, it may be possible to split the company into two separate entities with each spouse taking ownership of one.
- Negotiation – When a judge divides marital assets, he or she begins with the value of all combined assets. The value of the business would go on this list just like the value of the house. This allows for a financial division of assets in a manner that is fair. Often, if one spouse wants to keep the business, he or she may agree to trade the business for the house, cars, investment accounts, and so on.
Our firm can sometimes help clients divide a business during the mediation process. If no agreement can be reached, this will instead be done at trial and the judge’s decision made part of your divorce decree.
The Business Needs to Survive the Divorce
When hiring a Rialto business valuation lawyer, remember that the business must continue and survive the personal conflict between you and your spouse. Sometimes, mediation is the best way to keep the peace, even if this is the only issue resolved outside of trial.
The business failing does not benefit anyone, so it is important to focus on the long-term goal of maintaining a thriving company.
Have Your Business Valued During the Divorce
Don’t guess about what your business is worth. Find out for certain with the help of an experienced attorney. Making an appointment with the Law Office of Laurence J. Brock is as easy as calling 909-466-7661 or completing the contact form below. Schedule a free consultation with a Rialto business valuation lawyer and get started on your case today.