For business owners or spouses of business owners, divorce proceedings are uniquely complex. Understanding a business’ worth requires far more complex calculation than simply adding up its revenue streams, and dividing it is even more complex. Thankfully, couples in Southern California have a family law expert they can turn to: the Law Offices of Donald P. Schweitzer.
Our Certified Family Law Specialist and our diverse team of Pasadena divorce attorneys have handled numerous complex property division issues—including business valuation and division. In addition to the value of various assets, determining a person’s equity in his or her spouse’s business, and other assets, a good business valuation takes “goodwill” into account: the business’ ability to produce income based on future economic benefit and its effectiveness as a whole.
The power of a good divorce agreement is based in its reflection of the facts. Before a business can be effectively divided (or before a spouse’s interest can be bought out), the valuation has to be accurate and fair. Accurately understanding a business’ future prospects and current value is a key part of what makes our Pasadena divorce attorneys a unique resource for our clients.
For business owning spouses, we ensure that their future security is ensured with valuations that prevent “double dipping,” or when a spouse receives both income from a business and a portion of its total value from the other spouse. For couples who are drafting prenuptial agreements, business valuation can provide unique and powerful protections to smooth out any potential disputes ahead of time.
For spouses who have contributed their lives and their careers to help support their spouse’s business, our firm is able to provide forensic business valuation—a procedure that uncovers all potential and hidden assets and presents them before the court. Our valuation takes into account potential fraud or “off-the-book” assets, ensuring a fair process for your divorce.
If you’ve been afraid of initiating divorce because business division is complex and costly, let our firm help. We can offer business valuations founded on decades of family law experience.