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.



Comments are closed.