Do you need help with a business valuation as part of your divorce proceedings? Contact Greenville divorce lawyer J. Michael Turner, Jr. in Greenville. He represents clients in divorce claims that involve business ownership and valuation. Contact us for your consultation.
Business Valuation in Divorce Proceedings
If one of the spouses owns a business, the business may take center stage during divorce proceedings. You need answers to important questions, such as:
- Is the business a marital asset?
- What is the value of the business as a marital asset?
- How do you account for the value of the business and the income it may produce in the future?
- Do both spouses have equal rights to the business and its proceeds?
- What evidence do I need to prove the value of the business?
- Who will the court award the business to? What can I do to make my case?
- How can I best protect my rights and interests?
Attorney Michael Turner represents spouses in divorce cases involving business ownership. It is his goal to fully understand your situation and pursue your goals in court. He is an experienced litigator who protects your rights when a divorce case involves a business and its valuation. It is our goal for you to receive the outcome that you deserve.
Call or message us today to consult regarding your case.
Understanding Divorce Business Valuations in Greenville, SC
When one of the spouses owns a business, it is likely a marital asset that is subject to division. It can be hard to know where to even begin to determine a value and equitable division.
How do you value a business during divorce?
The value of a business during a divorce may include the following:
- Assets, taking debts into consideration
- Enterprise goodwill, the reputation of the business
- Value of stock
- Market value if the business were sold
- Projected income from the business
Goodwill may be enterprise goodwill – the reputation of the business itself – or it may be personal goodwill – customer loyalty to a specific person. How goodwill is split between enterprise and personal may make a great deal of difference in determining the value of the business.
To the extent that goodwill is more personal, it is likely to be considered as a party’s ability to earn an income rather than an asset of the business itself. (See Moore v. Moore, 414 S.C. 490 (2015)).
Valuing a business favorably requires presenting evidence to the court. It may mean exploring the accounting records of the business. It may mean having a forensic accountant prepare a report and testify at a hearing. When lawyer Michael Turner represents you, he evaluates the specific nature of the business to determine how to best present the court with the evidence that it needs to reach the correct decision.
Types of Business in Divorce Valuations
Some types of businesses that may be subject to valuation in a divorce proceeding are:
- Self-owned and small group owned
- One spouse as an owner or both spouses as owners
- A spouse working for the other spouse
- Professional practices like medicine, dental, orthodontics, accounting, law, or architecture
- Restaurants, bars, retail stores, manufacturing, construction, consulting, and franchises
- Service-based businesses
In addition to determining the proper value of the business, how it will be divided between the parties is also important. The value of the business is important as well as the income potential of a party for the purposes of determining alimony or child custody.
Determining alimony and child custody begins with determining what financial resources a party has available to pay support. It may be important to look beyond the most basic income records to look at the true assets available to a party and how they may be relevant to the determination of these issues.
Transmutation – business owned before marriage
It is common for a business involved in a divorce to be a business that a spouse owned before the marriage. It may still be considered marital property because of transmutation. Our law firm handles cases where transmutation may be a question.
Lawyer Handling Divorce Business Valuations in Greenville, SC
Each divorce is a unique situation. Whether you own the business or you rely on its income, achieving the right result in a Greenville business valuation divorce is important to you. Lawyer Michael Turner is a long-time family law and civil litigator. He can assist you with a divorce involving business ownership and valuation.
If your case has already begun, or you are looking to begin the process, we invite you to contact us to discuss your case. See how we can help you. We look forward to hearing from you. The team at Turner Family Law and Divorce Attorney are here to help you.