Accurate Assessment And Valuation
When a marriage includes a business, a divorce can become more complex. After determining whether or not a business or businesses are marital or separate property, the most important step is to accurately value the business or businesses.
Even if one spouse started and ran a business, if the other spouse contributed in any way to that business then part of that business may be found to be marital property.
Skilled Business Value Determination
Many of the high net worth cases involve ownership interest in a closely held business. It is critical to understand the tenets surrounding a business valuation. There are three basic approaches to such valuation: Earnings approach, Asset approach and Market-Comparable approach. At the firm we understand these concepts and their application and how to acquire the information sufficient to make such a value.
The firm has participated in valuing virtually every type of business: including internet related, service industry, auto dealerships, real estate development, fast food franchises involving hundreds of stores, billion-dollar apartment ownership group involving hundreds of separate corporate entities and a multitude of many other businesses.
Related to business valuation it is necessary to understand the principle of Goodwill. This is often considered as a potential marital asset depending on how it is defined either as personal goodwill or enterprise goodwill. At the firm we understand these concepts and have known how to maximize this issue. We also assist clients with properties outside of the United States.
In high net worth cases executives are compensated in a myriad of ways in addition to salary. Understanding such compensation and the related value is critical. Such other compensation includes: annual incentives, long term incentives (which may be vested and unvested and the coverture analysis related thereto) benefits, perquisites and severance -change-in-control agreements. Valuing each one of these elements whether it’s Restricted stock units (RSU), or stock appreciation rights (SAU) or Performance stock units (PSU) is something the firm has much experience in doing.
Work With The Established Business Valuation Team
Get the representation, guidance and skilled counsel you need when your divorce involves a business or businesses. Call  655-1901 to start the process.