A Divorce Attorney Can Help with Your Business Valuation

If you are getting a divorce, hire a divorce attorney to help you handle the case.  This is an incredibly difficult and sensitive time.  Trying to handle it on your own is unwise since emotion can complicate things, and your reasoning may not be as sharp as normal.  This is perfectly understandable since getting a divorce can be as traumatic as losing a family member.  Working with an expert lawyer can make the process easier so that you can focus on feeling better and taking care of your family.

There are many aspects to a divorce.  Not only are you changing your marital status but assets, and liabilities must be divided.  This includes everything from where you live to the cars that you drive and the family pet.  Every single item you own needs to be given to you or to your spouse, which can be cumbersome at best.  If you own a business, this process becomes much more complicated.

Dividing a business is not easy and normally not practical.  For example, you cannot take an operating company and say that one spouse gets the sales force and their revenue while the other gets the service staff and the revenue they generate.  A business doesn’t work like that so any division of it needs to be financial.  The question then becomes, what is your business worth?  A divorce attorney can help you to find out.

Since the business is a living and changing entity, a business valuation is typically done to determine how much it is worth.  This should be done by an expert such as a CPA or valuation specialist.  There are many ways to evaluate a company that may include looking at tax returns to determine net income along with placing  a value on intangibles like customer relationships and tangible items like equipment.   This is far more complicated that simply looking at your tax returns alone, so working with an expert is important.

Once the business value has been determined, the other party needs to agree to the value or dispute it by obtaining their own business valuation.  After each party has agreed to a set value, it is time to negotiate how much of the business each person should get and how the other person needs to pay them for it.  When hard assets like real estate are involved this can become easier by getting a loan to buy the other party out.  Otherwise, monthly payments are often arranged just like they would be if a partner buyout was being completed.  Working with an expert attorney will ensure that your interests are protected during this process.

As a divorce attorney, we often find that dividing up a business can be a sensitive matter.  This is because most people invest more than time in a business.  It can become their “baby” so to speak. Before you start the process call Keen & Genochio Attorneys at Law at (619) 232-2217 to schedule your consultation.

Tips from a Local Divorce Attorney

This is a difficult time and a divorce attorney can guide you through the process so that you and your assets are protected. If you are considering a divorce, we recommend that you schedule an appointment to have a consultation.  There are things you can do ahead of time to protect yourself and your family.

Here are some things to consider:

·         Where do you want to live after the divorce?  You need to make preparations for this ahead of time.  If you have children, the home becomes more valuable because whoever continues to live in the “family home” could be viewed to have more stability.  If you want to share custody try to live within the school district, even if you do move.  This is one of several factors when determining custody so if possible, put yourself in a good position by staying in the home until after the divorce has been finalized.

·         What custody schedule do you want to have?  Try to set the schedule at the time of separation for what you want to have in the long run.  Judges will often look to the existing schedule to determine what is working.  If it appears to be going fine, they will likely just keep your existing schedule in place as part of the divorce.  If you want primary custody try to keep the kids as much as you can now.

·         What do you do for work?  Employment consistency will help with showing you are stable and a good provider for the kids.  If you haven’t been working and have been depending on your spouse for income, we can help you to create a strategy to obtain spousal support. 

·         Examine your assets.  Are their certain things that you want out of the divorce?  If so we need to know right away and know your thinking behind why you thing they should belong to you.  It is our job to make your case and the more information we have, the better.

·         What will you compromise on?  As a divorce attorney, it is rare to see someone get everything that they want.  It is best to know which items you are willing to compromise on and which ones you are non-negotiable.  This gives us something to work with.

·         Bank accounts.  If you want to get a divorce, it is smart to take out a credit card in your name only and to open a separate bank account where you can place some savings.  When your spouse finds out about the divorce, they could respond in anger and try to take you off of your accounts.  While this is illegal, and we can help correct it, you could be in a temporary lurch and this is not a stress you need to deal with. Prepare for financial challenges by saving some money.

Timing is important when you are planning for a divorce.  If you do it correctly, you can have more of what you want.  Call us today to learn how a local divorce attorney can help.