When people of a high net worth decide that it’s time to pursue a divorce, they often must deal with a complicated property division process such that the result is fair and equitable.  This is particularly difficult when one of the spouses owns a business that has been supplying the family with income and other assets during the marriage.  Unfortunately, mistakes in this regard are often made by those involved to the point where the split is not equitable and/or unforeseen and punitive tax consequences can arise for one or even both spouses sometime down the road.

Fortunately, there are San Diego high asset divorce lawyers who have handled business valuation issues in the past, and the best approach to take in these matters is to employ the help of experienced accountants and business valuation experts who will be able to place a fair and accurate value on that business.  There are several different methods that could be used to arrive at a business’ value, and examples of these approaches include:

• Market comparison
• Income approach
• Liquidation value
• Adjusted book value

Of course, there are other issues that could arise that further complicate this matter.  Specifically, if the spouse who owns the business does not own it outright, he or she may need to have that ownership interest asset adjusted to that percentage of ownership or even to the portion of the ownership interest that has already vested versus the percentage that will vest in the future.

San Diego High Asset Divorce Lawyers

Clearly, encountering the need for a business valuation as part of a California divorce is a step that should be taken with only the best professionals involved.  This will maximize the possibility that the process is done right and that the spouses can each walk away with a fair share of the overall marital estate.