Business Valuation: Boston Divorce Attorney

At Turco Legal, our Boston divorce attorneys have the skills and expertise necessary to handle complex divorce cases, including those involving business valuations. With extensive experience representing clients in high-net-worth divorce cases, our legal team understands the importance of getting the finances right. If you or your spouse owns a business and you are going through a divorce, it is imperative that you get a comprehensive business valuation. To set up a fully confidential initial consultation with an experienced Massachusetts family law lawyer, please reach out to our Boston office today.

What Is a Business Valuation?

How much is a company actually worth? It is not an easy question to answer—especially with small and other closely-held businesses. As the Corporate Finance Institute explains, a business valuation is the “process of determining the present value of a company.” Businesses are often made up of a combination of tangible assets (i.e., inventory, equipment, cash, etc.) and intangible assets (i.e., goodwill, brand name, intellectual property rights, and so on). These assets—along with other factors, like liabilities—are considered when valuing a business.

Several approaches can be used to value a business. The three most common examples in Massachusetts are the following.

• 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 business owners and the spouses of business owners, a comprehensive business valuation is one of the most important steps in the divorce process. In Massachusetts, a business that was formed or acquired during the marriage could be considered marital property. As such, that business may be subject to equitable property division in a divorce case, even if one spouse is the sole proprietor. The same may be true for a business that grew due, in part, to the contributions of the non-owner spouse (financial and otherwise). Accordingly, you cannot effectively deal with a business in a divorce unless you have a clear, well-supported valuation of the company.

A Business Valuation Is Often Performed by a Forensic Accountant

A Boston business valuation is often performed by a forensic accounting professional. A forensic accountant has the specialized knowledge and skills necessary to investigate and analyze the finances of a business. . In a Massachusetts divorce, each spouse can retain their forensic accountant to conduct a business valuation. However, that is not required. Parties to a divorce in Boston can also jointly hire a forensic accounting professional to value the business. The best approach for your case depends on your specific circumstances.

Protect Your Business During Divorce

A divorce has the potential to cause damage to a small business or closely held corporation. It is crucial that you make a proactive effort to protect your business during the divorce process. With the right strategy, you can preserve your company and ensure that it is not adversely affected by divorce. A Boston divorce lawyer for business owners can help you develop an effective strategy.

How Turco Legal Can Help You in a Divorce That Involves a Business Valuation

Divorce is complicated—especially for those who own a business. Without an accurate and comprehensive valuation of your company, you risk an inequitable distribution of your marital estate. At Turco Legal, we have the family law knowledge, experience, and skills to handle business interests in a divorce. Our Boston divorce lawyers for business owners are ready to:

• Conduct a comprehensive evaluation of your case;
• Answer any questions that you have about the Massachusetts divorce process;
• Gather and analyze all relevant financial and business records;
• Connect you with the right forensic accounting expert for a business valuation; and,
• Provide well-rounded legal representation to help you secure the best outcome in your case.

Get Help from Our Boston Divorce Attorney for Business Owners 

At Turco Legal, our Boston divorce lawyers have the legal skills, financial knowledge, and professional connections to represent business owners in divorce. If you have any questions or concerns about business valuations, we are here to help. Call us at (978) 225-9030 or connect with us online to request your fully confidential, initial legal consultation. From our law office in Boston, we represent clients in Suffolk County and throughout Eastern Massachusetts.