Many Maryland business owners who are considering divorce have serious concerns about how their business might be affected. Very often, people put everything they have into building their business from the ground up. They invest time, money and extraordinary effort to create a successful venture. When a divorce is on the horizon, the manner in which business assets will be handled during property division is a chief concern.
One of the first steps in determining how to divide business assets during divorce is to obtain a professional business valuation. The best way to approach this task is by hiring an independent financial expert who specializes in business valuation during divorce. That individual will have the skills and experience necessary to comb through financial records and assess current market conditions to reach a fair determination of value.
Part of that process involves assessing current economic conditions, which can have a great deal of impact on the value of the business at any given point in time. Next, a business valuation expert will take a close look at all financial records, both past and present. The value of any stock will be assessed, and a full accounting of outstanding debts will also be made. Even intangible assets, such as market reputation and customer relations will be assigned a value.
Once those numbers are in place, Maryland business owners can begin the process of negotiating the division of those assets. Depending on how the parties wish to move forward, one spouse could buy out the other’s interest in the business, or the entity may have to be sold in order to fulfill property division requirements. This is an area of family law where individuals have a great deal of flexibility in structuring a solution that can meet their particular set of needs.
Source: dailyherald.com, “What will happen to my business if I get a divorce?“, Miriam Cooper, Sept. 6, 2017