Business Valuation: Newburyport Divorce Attorney
At Turco Legal, our Newburyport divorce attorneys have the necessary skills and expertise to handle high-net-worth divorce cases—including divorce matters involving business ownership and business interests. A comprehensive business valuation is a must for business owners going through a divorce. To learn more about the business valuation process and how it may factor into your case, contact us at our Newburyport law office and schedule a confidential consultation with a top Massachusetts divorce attorney.
Business Valuation Explained
If you or your spouse owns a business or otherwise has a business interest, you cannot effectively go through the divorce process without getting a thorough business valuation. The Corporate Finance Institute defines a business valuation as a systematic “process of determining the present value of a company.” Businesses—particularly small businesses—can be hard to value. A detail-intensive assessment of tangible property, intangible assets, and outstanding liabilities is needed. There are several approaches to conducting a business valuation, including the following.
- Income Value Approach: Businesses in Massachusetts are commonly valued using the income approach. You may also hear this approach referred to as a discounted cash-flow analysis. In effect, a company’s current income (cash flow) and projected future income will be analyzed to determine the appropriate value of the business.
- Asset Value Approach: While less commonly used to value businesses in Massachusetts, the asset approach makes sense in certain circumstances. Instead of focusing on cash flow, the asset approach focuses on the value of the business’ assets (both tangible and intangible) and the liabilities of the company.
- Market Value Approach: A third methodology for the valuation of a business in Massachusetts is the market approach. With this valuation method, the value of a business is determined by assessing how much it could be sold on the open market.
A Business Valuation Is Crucial in a Divorce Involving a Business
Whether you own a company, your spouse owns a company, or you collectively own a company, you should not go through the divorce process without a thorough business valuation. In Massachusetts, businesses are often, but not always, subject to equitable distribution in divorce. This means that each spouse may be entitled to their “fair share” of the value of the business. Accordingly, to navigate property division and business interests in a Massachusetts divorce—including what a “fair share” is—you need a comprehensive business valuation. It is imperative that you know the value of your company and can back it up.
Understanding the Role of a Forensic Accountant
Oftentimes, business valuations are conducted by a professional called a forensic accountant. Forensic accounting is a specialty practice area that focuses on the investigation of financial matters, including business valuations. Each party to a divorce may choose to bring in their forensic accounting professional for a business valuation. Alternatively, parties who are closer to a settlement or especially amicable may decide to jointly hire a neutral and independent forensic accountant.
You Should Proactively Protect Your Business in a Divorce
Divorce can pose a risk for businesses—especially for small companies and closely held corporations. It is crucial that you develop a proactive strategy to protect your business, protect your personal financial interests, and put your company in the best position to get through the divorce process. Our Newburyport, MA divorce lawyers for business owners will help you navigate the legal process and put your company in the best position.
How Our Newburyport, MA Divorce Lawyers Can Help in Matters Involving Business Valuations
If you or your spouse own a business, the divorce process can be especially complicated. At Turco Legal, we have the skills and knowledge to ensure that your legal rights, your financial interests, and business are all protected in a divorce. When you contact our Newburyport law office, you will have the opportunity to connect with a Massachusetts business owner divorce lawyer who can:
- Answer your questions and explain the business valuation/divorce process through a confidential consultation;
- Investigate your case—gathering, preparing, and analyzing financial and business records;
- Work with the right forensic accounting experts for a business valuation; and,
- Develop a strategy to get you the best results in your divorce case.
Speak to a Newburyport Divorce Attorney for Business Owners Today
At Turco Legal, our Newburyport family law attorneys have the legal expertise, financial knowledge, and professional connections to effectively advocate for business owners in divorce cases. If you or your spouse is a business owner and you are considering divorce, we can help. Contact our legal team at (978) 225-9030 for a confidential consultation. From our office in Newburyport, we represent business owners in divorce matters throughout Essex County and northeast Massachusetts.