Financial Issues in a Divorce
Professional Practice and Business Valuation
One of the most complex appraisal tasks in a high net worth divorce is the value analysis of businesses and professional practices. This valuation must assess not only the fair market value of the business or practice, but also the goodwill it has obtained throughout its existence.
The dedicated legal team at SekellaLaw, PLLC, in Manchester, New Hampshire, leverages their skill and experience to gather all necessary information and analyze it to determine fair market value and goodwill. In the discovery process for valuing professional practices and businesses, we request and then scrutinize — along with our forensic experts — a variety of different financial records, tax returns and business records to properly value a business for purposes of a divorce.
Determining Fair Market Value
The fair market value is the price that a buyer would be willing to pay for the business. Factors that can either raise or lower market value include:
- Assets and liabilities
- Financial track record
- Business performance
Also, characteristics of marketability and control are measured, and can add or take away from the fair market value for property division purposes. At SekellaLaw, PLLC, founding attorney Heather M. Sekella is a certified financial litigator and knows how to determine the fair market value of a business or practice during divorce.
What is the Goodwill of a Business?
Gauging goodwill is a way of approximating the future success of a business. There are two different categories of goodwill: personal and professional. Professional goodwill is the likelihood that a client will return to the business for goods or services in the future. Personal goodwill is the positive reputation stemming from the professional involved in business, such as education and experience.
The skilled lawyers at SekellaLaw, PLLC, collaborate with other valuation professionals to look at all the factors contributing to the amount a person would reasonably pay for the business to make a valuation determination. Don't leave anything on the table during your divorce — make sure you're properly compensated for a business asset tied to your divorce.
Call an experienced family law attorney with an understanding of business valuation today at 603-623-1003 or send us a message online. Schedule a complimentary case review and see how we can craft a valuation strategy tailored to your situation.