Your company is one of the most important assets in your life. You may have spent years perfecting your operations and doing whatever you could to reach a point of stability and sustainability with your company. While you also tried to take the same approach to your marriage, the relationship simply did not work, and now, you face divorce.
As a business owner, you will contend with issues that other individuals may not during this process. In particular, you want to protect your company as best as possible and ensure that your marriage dissolution does not have any negative blowback on your business. Still, the value of your business will likely play a role in your divorce.
Determining the value
When it comes to determining the value of your business, you have various options to consider. One option to assess is the asset-based approach. With this method, the value of your company essentially comes from subtracting outstanding liabilities from available assets. Of course, this definition oversimplifies the process, which is why you would be wise to consider enlisting the help of an accredited professional who understands the ins and outs of business valuation.
One issue that may need addressing during the valuation process could involve adjusting net assets. The market value of your company’s assets under the current economic conditions comes into play during an adjusted asset-based valuation. Depreciation of assets over time could prove important to balance sheet valuations. It may also be necessary to determine the value of trade secrets or other information that could affect the value of company assets and influence what is an asset.
Considering your options
An asset-based approach is just one of multiple methods available for valuing a business, so it is important that you consider your valuation options closely. You may also want to keep in mind that your soon-to-be ex-spouse could choose to obtain a valuation of your business of his or her own to ensure the calculation of the true value of the company. It is likely for different valuation methods to have different results.
Wanting to part ways as smoothly as possible while also holding on to your company’s best interests can bring a complex element to your divorce case. As a result, you may find it useful to enlist the help of a California attorney experienced in handling high-asset and complex cases to see you through the process.