Help With Difficult Business And Asset Valuation
For many assets in a divorce, the value is readily ascertainable or irrelevant. This is because there is either an established market for the item, like a home, securities or vehicle, or there is virtually no market for the items, and they are primarily sentimental in value.
Accurate Business Valuation Essential
During a divorce with many assets, a particular problem may develop when one of the primary marital assets is business or professional practice. Because it is likely to be a marital asset and part of the asset division, it must be valued. There are multiple challenges with an appraisal when the business is a small, family-owned entity or a professional practice. The business owner may place an elevated value on the entity, knowing how much effort they placed in developing it, whereas potential buyers may appraise the value strictly on its revenue stream or the value of its physical assets.
Another problem may present itself to the other spouse, who may not have been deeply involved in the business, which is the potential for undervaluing the asset or the income stream. If the owner has been contemplating divorce for any length of time, they may have structured the income and assets of the business in such a way as to hide assets or revenue. This can lead to the other spouse to unwittingly accepting less than a fair and equitable amount of the business.
At Olson Law LLC, our attorneys can help clients with these complex issues. Property division is of great importance when dealing with any divorce, and it is especially important with a high-asset divorce.
Property Divisions Are Final
One reason this is very important is that your property settlement is not subject to modification. When the final order is entered in your divorce, it becomes very difficult and expensive to reopen a property settlement. In most cases, you need to prove actual fraud by your former spouse. This can be quite difficult and is only undertaken when there are very substantial amounts of money in question.
Nonetheless, accuracy is necessary, as these valuations are submitted to the family law court under oath and intentional misstatements could lead to perjury charges as well as other court sanctions.
Contact Us For Help
We can help you obtain a valuation for a business during a divorce. Call 763-515-8013 for a free consultation with a lawyer. You can also schedule online. From our office in Buffalo, Minnesota, we represent clients throughout Maple Grove, Wright County and the west Twin Cities metro area.