One of the most important parts of a divorce is the equitable division of assets. New Jersey divorce for men and fathers must treat both parties fairly when it comes to spousal support, child custody, and asset distribution. Since men are still the breadwinners in many marriages, it’s more likely that a husband will own and operate a business (although there are plenty of exceptions). Men who are business owners must prove their earning potential using much more than the average paystub. Valuing a business that could continue to grow or shrink – and make a profit or take a loss – is complex but necessary.
These are the essential truths every divorcing business owner should know about business appraisals and valuation.
If You Own A Business, It Needs A Valuation
It’s virtually unavoidable: if you, your spouse, or both of you own a business, it will need to be assessed and its value must be determined during your divorce. Your New Jersey divorce attorney will want to know the total of all your assets and debts so they can negotiate the best possible outcome to your divorce. Divorce lawyers for men in New Jersey want to ensure their client isn’t taken advantage of just because he is a business owner. Your wife may claim you’ll be disproportionately financially advantaged after the divorce – we want to make sure that’s accurate before agreeing to anything.
Every Business Has A Value
Small business owners may assume their company doesn’t have enough value to “matter” during the divorce. Even if you don’t have any employees, or if you work out of your home, your business absolutely must be assessed by a professional who can provide a divorce valuation. If you’re in debt because of your business, that debt may also be shared between you and your spouse. Any divorce settlement must address how this debt will be handled. So, whether your company has added or subtracted value from your total assets, it still needs to be assessed before you make any decisions.
A Valuation Isn’t Always Agreed Upon
It’s possible that your spouse will disagree with the assessment of your business. If this happens, you will need your expert to stand by their opinion in court. This is what makes it so important to only work with an experienced and credible expert. If your spouse’s attorney questions how the value was assessed, your expert must be prepared to defend their work.
In many cases, both spouses will hire a business appraiser to be sure they are protecting their rights. Accepting what your spouse’s expert has to say may be a poor idea – after all, she is the one paying the bill for their services. If your experts come to a similar conclusion about the value of the business, great! You can go with that valuation and continue with your negotiations. But if there is a discrepancy between the two, be prepared to defend your expert analysis.
The Micklin Law Groups’s attorneys are experienced in divorce and family law for men in New Jersey. We have worked with many business owners to ensure their company is properly appraised during their divorce. Contact our team for assistance.