Valuing and Dividing a Business in Divorce

September 23rd, 2016


Our Portland OR Attorney has noticed that in most cases, spouses receive a “fair” share of property in a divorce, not an equal share.

Cash RegisterProperty not only includes stuff like cars, houses, and jewelry but businesses too.

Fairly dividing a business is not as easy as it sounds. Obviously, financials records will have to be analyzed, but there are assets and liabilities to consider as well as a myriad of other things like merchandise, infrastructure, public image, and client goodwill.

The type of business is also a factor. Valuation will be different for a sales-based business than it will be for a service-based business.

Finally, when it comes to dividing a business, it will probably be necessary to determine a present and future value.

Once a business’ value has been determined, it can be divided. How are businesses split in a divorce?

There are several ways to divide a business in a divorce.

• Spouses can sell the business and divide the profits.
• Award individual parts of the business to each spouse.
• One spouse buys the other spouse’s interest in the business.
• One spouse trades their share of the business to the other for assets of equal value.
• The business makes payments to both spouses for a predetermined length of time.
• Don’t do anything. Even though divorced, the couple continues to operate the business as partners.

As you can see, valuing a business in a divorce can be quite complicated. Fortunately, divorce attorneys in Portland Oregon can help you through the process.

One of those attorneys is Ronald Johnston. You can contact him here.

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