While sticking points like marital assets and child custody can be the largest hurdles to negotiating a divorce, often the most expensive hurdle comes when the uncoupling couple owns a business together. Whether the couple maintains individual or shared interest, and whether one or both partners will leave the business, are important distinctions in understanding how the business is evaluated. There are several approaches to determining a business valuation, but the onus is on those involved – by the attorneys, outside evaluators or the parties themselves – to persuade the judge or mediation to reach a fair division.
Achieving that division means that properly valuating your business is crucial. In general, there are three common approaches to determining the value of a business, each with its own respective strengths and weaknesses. Depending on circumstances, a valuator may choose to use the Asset Approach, the Income Approach or the Market Approach.
Determining the value of your Georgia business following a divorce should just be a matter of crunching the numbers. The methods listed above are all backed by thorough analysis and recognized methodologies, and should create a clear, unimpeachable path to determining how much your business is worth.
However, in order to calculate the value of your business there are several subjective judgements that the business valuation experts must make along the way. Because of this, it is a rare situation to find two business valuation experts who value your business the same way.
Beyond disagreements over the valuation of the business itself, there may be conflicting views on how the business will be divided. Will the business be able to continue operating if forced to liquidate assets? What is the tax ramification for either party as the result of the sale? Are there any assets that are being deliberately hidden from one party? Any one of these disagreements can unravel negotiations toward a fair division of assets. And handling these disagreements requires an attorney willing to do whatever it takes.
When talking to new clients about their pending divorce, and the ramifications that their business’ valuation can have on it, we like to remind them of the laws of the wild.
In the wild, there are many different kinds of prey, and many different kinds of predators. Ambush predators stay hidden until the time is right, striking with the element of surprise and using the chaos of the moment to their advantage. We like to think of ourselves more as wolves.
Wolves’ methods are far more deliberate than a sudden attack. They are cunning, patient and relentless in pursuing their prey, learning everything about its defenses, strengths and weaknesses before closing in for the inevitable kill.
When determining the value of your business in a divorce case, you hold more cards than you may realize. If you show the patience of the wolf, and dedication to a long-term strategy, you will see a positive outcome. You need an attorney who shares that approach.
That’s where we come in. Our practiced approach has helped countless clients just like you find a winning path forward. It all starts with your initial confidential consultation; just a simple flat fee of $450 that gives you a far greater understanding of your case and the strategies that we will use to protect your assets and your interests. It’s worth your time to start this process now, before the other party has a chance to liquidate your hard-earned assets.
With that consultation behind you, and with the knowledge in hand it provides you, we will establish a retainer fee and then get the wolves ready to circle. Please submit your contact information below or call (912) 351-8775.