The Dissolution Court must value the parties’ assets in order to fairly divide them. One of the most complicated areas of practice in the family law field is the process of valuing a closely held business. Most of the time, when a family owns a closely held corporation, one of the parties has a far more intimate knowledge of the workings of the family business. We have represented a great many people seeking divorce on both sides of the business valuation issue. We have represented people who owned accounting firms, medical practices, dental practices, fast food franchises, upscale restaurants, law practices, glazing companies, construction companies, paving companies, medical headhunting companies, heating and air conditioning companies, plumbing companies, automobile repair facilities, automobile dealerships, and many more. We have worked with a number of certified public accountants who have been specifically trained to value closely held businesses for purposes of divorce. We have the experience to help you save your business, or conversely, to help you receive the rightful compensation for your ownership interest in the business.
When forced with a family law case that involves a closely held business, the dissolution attorney must have a basis of knowledge to understand corporate tax returns, financial statements, and profit and loss statements. The trial court must make a determination as to the fair market value of the business. Law students do not learn how to value businesses. The best divorce lawyer must have enough confidence to admit that there exist experts who know how to determine the value of a business for purposes of a divorce. There exist business valuators who find value for purposes of a sale of the business. The method of valuation used for a sale is not the correct method for the valuation of a business in a Dissolution of Marriage action. It is incumbent of a business owner seeking a divorce to retain a dissolution attorney who knows what inquiries to make in regards to the value of a closely held corporation.
Many businesses work with banks and use creative financing to meet their financial needs. The best dissolution attorneys understand banking and corporate debt and the debt’s impact on the value of the closely held corporations. We have spent many years studying banking and business valuation so that we are prepared to help clients who bring complicated valuation issues to us.