Divorce conflicts often focus on valuable assets that spouses share. Addressing real property and retirement savings can cause tension. If the spouses run a business together or one of them has a successful business or professional practice, their business holdings can also become a source of conflict.
Spouses might disagree about the most appropriate way to address the business during property division negotiations. To appropriately address high-value assets, spouses must first validate what those assets are actually worth. Who decides the fair market value of a business or professional practice during a divorce?
Spouses can agree on a value
Uncontested divorces where spouses settle their disagreements privately are more predictable than litigated divorces. They are also far more private.
Spouses can review financial records and negotiate with one another to arrive at a reasonable valuation for the company that they both deem acceptable. They may even choose to work with an outside professional to conduct a business valuation to minimize opportunities for conflict.
A judge can settle disagreements
In cases where spouses cannot agree on what a business is worth, a family law judge can help settle the dispute. They can review documentation, ranging from a professional valuation to company financial records. They can then impose a specific value when addressing the business and other assets during the property division process.
In scenarios where spouses preparing for a high-asset divorce anticipate valuation-related conflicts, each should get their own legal guidance early in the divorce process. This can help spouses negotiate reasonable property division terms, even if they have to address complex assets, such as family-owned businesses.