Dear Attorneys,
My wife owns her own business and keeps telling me that it isn’t worth anything. I just filed for divorce and I think I’m entitled to a portion of her company. How do I know what I’m entitled to if she keeps saying that it has no value?
Sincerely,
Valuing Victor
Dear Victor,
Some people say that their business is not worth anything because they think of it in a scenario where if they were to sell it and not be a part of it, then it would hold no value. That is true in some circumstances, but not most. Also, in a divorce, a business owner usually does keep his or her business, so even if that was their argument, it would not be a good one. Sometimes you can get a ballpark idea of what a business is worth by a profit and loss statement combined with valuing the company’s assets (for example if they own a building, multiple cars, etc.). However, the only way to get the true value of a business is to do a business valuation. This may include, or be combined with, a forensic accounting. Not everyone wants to do that because it can be expensive. However, if you are looking to walk away with a “buyout” from what could be your share of the business, then a business valuation may be money well spent. Your first step should probably be to contact an attorney and get his or her opinion. They may be able to request sufficient documents through financial discovery to avoid a full valuation. However, if not, at least you will know what options you can pursue.
Wolf & Shore Law Group is here to help you make your family law matters easier, not harder. We are realistic and direct with our clients. We encourage potential clients to seek out a firm where they will feel comfortable and confident. Ever argue with a woman? Let Wolf & Shore Law Group go to work for you. Call us at 203.745.3151 or email us at info@wolfandshorelaw.com.
Very Truly Yours,
Wolf & Shore Law Group
*The situations represented in our Dear Attorneys column are entirely fictional and any resemblance to a specific case is unintentional. We cannot, and will not, offer legal advice to anyone who is not a client. However, if you do have questions or concerns, you should contact an attorney at your convenience.
