Valuation of business important step in property division

Those who have spent years in sweat equity, building a family business, are often left financially devastated in the aftermath of a divorce. One way to help protect a business is to ensure that it is properly evaluated before it comes time for a judge to rule on the property division aspect of a dissolution. It is likely that there are many Kentucky business owners who are worried about how an impending divorce will affect their venture going forward.

In order to ensure that a business is properly evaluated for its worth, it is usually necessary to retain the professional assistance of a specialized accountant. This is typically done through the efforts of an experienced divorce attorney who will contact an accountant who holds the required accreditation to offer a professional and thorough assessment of a family business. There is often a tendency for one or the other spouse involved in the divorce to be inclined to either over or undervalue these assets in an effort to either preserve as much as possible from the division of assets or to gain more than one is rightly owed. A professional evaluation can negate these attempts.

A skilled accountant will understand the importance of a thorough evaluation and the factors that may make the business either profitable or struggling to remain solvent. Several factors must be taken into consideration, including whether values must be adjusted due to current economic fluctuations or seasonal adjustments. In addition, the credit worthiness of the enterprise must be protected if it is expected to thrive in the years ahead.

Since spouses, the courts and other invested individuals may rely on the business to meet the costs of the divorce -- including child support and alimony -- it is vital that a thorough investigation is completed by a qualified accountant. In some cases, that may entail determining whether all of the business' assets are subject to the property division laws in the state. Kentucky residents who own a business that they hope to preserve for future generations, in spite of a marital demise, may be best served by seeking the services of an attorney who routinely handles these types of cases and who can provide the most comprehensive assistance.

Source: sbnonline.com, "Accountants can help family business owners protect assets after a divorce", Jan. 2, 2018

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