For people headed for divorce in North Carolina, the end of a marriage can be complicated not only by the emotional fallout but also by financial complications. This is especially true when a small business owner or entrepreneur decides to divorce. Whether a business owner runs the business on their own or the company is a partnership with one’s spouse, the value of the business can be relevant throughout the divorce proceedings.
Depending on the size and success of the business, it may be a substantial asset to be considered during property division in divorce negotiations. In order for the value of the business to be accurately considered, getting a proper valuation can be important. Aspects of the business that can be evaluated include liabilities and debts, future growth potential and current revenues. For those involved in a partnership with their former spouse, it can also be important to establish a price at which one’s former spouse could buy them out of the business.
In order to set buyout terms and deal properly with the business in divorce negotiations, it is important to gain an accurate valuation. This is the case whether it is a solo business or a partnership. A professional appraisal by a forensic accountant can help establish a clear value of the business. It can also be critical to maintain the value of the business throughout the divorce process by continuing to manage operations, fill orders and otherwise deal with clients and customers.
Throughout the divorce process, it is important to gain a correct understanding of the finances of the business. This helps avoid an unfair settlement that overvalues or undervalues the enterprise. Throughout the property division process, a family law attorney may advocate for their client’s interests and work to ensure that they receive a fair shake as marital assets are separated.