Valuing a Business in Divorce
Placing a value on a business or professional practice is not always a simple exercise. There can be numerous issues that require careful analysis and research.
At Shapiro Family Law, we have extensive experience in divorces involving the ownership of businesses, the ownership of professional practices and other complex financial matters. Our attorneys use their knowledge and that of business valuation specialists to develop accurate valuations that can stand up to the scrutiny of financial professionals retained by opposing law firms.
Whether you are a business owner or the spouse of a business owner, Shapiro Family Law in Denver, Colorado, can help you.
Overcoming Challenges When Valuing a Business
These are some of the issues that can arise when valuing a business in divorce:
Income statements that do not reflect true value — Even an income statement or balance sheet that has been vetted by a leading accounting firm may not accurately state the true value of the enterprise. For example, there may be tax liabilities or tax loss carryforwards that are not included. There may be hidden personal expenses as well. We dig deep into the facts to establish the true value of a company.
What are the true contributions of the spouses to the business? — The business owner may be deliberately taking a lower salary to plow that money back into the business, inflating profits and the value of the company. A spouse not formally employed by the business may actually be contributing essential services. Our lawyers can identify these and other issues.
Valuing technology companies — Placing a value on a technology startup, or even an established technology company, presents numerous challenges. Our attorneys have access to resources that can provide invaluable insights such as venture capital specialists and technology professionals.
Developing industries and special situations — How do you place a value on an entrant to a rapidly developing industry, such as a new franchise concept or medical marijuana dispensary? What about a business in a mature or declining market? We have answers to these and other questions.
Conflicting valuations developed by different specialists — The court may appoint a neutral business valuation specialist, or a valuation specialist retained by the other spouse may return a starkly different number than the specialist retained by Shapiro Family Law. We choose reliable business valuation specialists with a track record and the ability to defend their findings in court or in settlement negotiations.