Business Valuation: Boston Divorce Attorney
At Turco Legal, our Boston divorce attorneys bring a wealth of experience and expertise to complex divorce cases, including those involving business valuations. With extensive experience handling high-net-worth divorce cases, our team understands the critical importance of a thorough and accurate financial assessment. If you or your spouse owns a business, it is essential to obtain a comprehensive business valuation during the divorce process. To schedule a confidential initial consultation with an experienced Massachusetts family law attorney, please reach out to our Boston office today.
What Is a Business Valuation?
Determining the true value of a business can be a complex task, particularly when it comes to small or closely-held companies. According to the Corporate Finance Institute, a business valuation is the “process of determining the present value of a company.” Businesses are made up of both tangible assets (such as inventory, equipment, and cash) and intangible assets (such as goodwill, brand reputation, and intellectual property). These assets, alongside factors like liabilities, are all considered in a business valuation.
There are several methods for valuing a business. In Massachusetts, the three most common approaches are:
- Income Approach. The income approach is the most common strategy for valuing a business. It takes the current income that the business generates and the projected future income to determine a value.
- Asset Approach: Some businesses are more accurately valued using the asset approach. This methodology effectively determines the company’s value by adding up the total assets and subtracting its total outstanding liabilities.
- Market Approach: The market approach is a business valuation methodology that determines the value of a company using the value of other comparable businesses that recently sold or are on the market. In determining business comparability, factors like company size, industry, and geographic location are considered.
Why a Business Valuation Is Important in a Divorce
For both business owners and their spouses, a detailed business valuation is crucial during divorce proceedings. In Massachusetts, a business that was formed or acquired during the marriage may be considered marital property, which could be subject to equitable distribution. Even if one spouse is the sole owner, a business that has grown due to the contributions of both parties—financially or otherwise—can still be considered marital property. Without an accurate valuation, dividing the marital estate fairly becomes difficult.
The Role of Forensic Accountants in Business Valuations
In many divorce cases involving a business, a forensic accountant may be engaged to conduct the business valuation. A forensic accountant possesses the expertise needed to examine and analyze a company’s financial records thoroughly. In Massachusetts, each spouse may hire their own forensic accountant, though they may also choose to work with a single expert to conduct the valuation. The best approach depends on the specifics of your case.
Protecting Your Business During Divorce
A divorce can present significant challenges to a small business or closely held corporation. Taking proactive steps to protect your business is essential to minimizing potential disruption. With careful planning and the right legal guidance, you can safeguard your company throughout the divorce process. Our team of Boston divorce attorneys for business owners is here to help you develop an effective strategy to protect your business interests.
How Turco Legal Can Assist with Your Business Valuation in Divorce
Divorce can be particularly complicated for those with business ownership interests. An inaccurate or incomplete valuation could result in an unfair division of assets. At Turco Legal, we offer the legal expertise and financial insight needed to navigate the complexities of business valuations in divorce. Our Boston divorce lawyers are ready to:
Provide a comprehensive evaluation of your case.
Answer any questions you have regarding the divorce process in Massachusetts.
Collect and analyze relevant financial and business records.
Connect you with the right forensic accounting expert for a detailed business valuation.
Offer strategic legal representation to help you achieve the best possible outcome.
Get Help from Our Boston Divorce Attorney for Business Owners
At Turco Legal, we combine legal knowledge, financial acumen, and professional connections to provide exceptional representation for business owners going through divorce. If you have questions about business valuations or the divorce process, we are here to assist you. Contact us today at (617) 657-4878 or schedule your confidential initial consultation. From our office in Boston, we represent clients throughout Suffolk County and Eastern Massachusetts.