22 Jan Business Interests Can Throw a Wrench in Divorce

No matter how civil a divorce seems, when it comes to dividing marital property and debt, things can get complicated. “Marital assets” can mean a lot of things including business interests. Usually, couples think of homes and cars when they think about assets, but don’t forget about investments, bank accounts, retirement accounts, and even personal items. The more assets you have, the messier divorce can become.

Entrepreneurship flourished after the Great Recession, but there’s a downside. If one party has business interests, they’re especially complex because it can be tough to determine their value. One soon-to-be ex might say there’s virtually no value while the other might say it’s substantial. There can also be arguments over how much “interest” each party holds in the business, too.

It’s critical that the business interest is valuated. That’s the first step for a smoother divorce. A non-biased financial expert is the best person for the task. Also known as an outside business valuator, this professional will talk to both parties and pore over documents. A site visit might be necessary to fully determine the value. In some cases, the business has substantial value, or perhaps cash flow is what really boosts the business’s intere22st value.

Internal Revenue Rule 59-60 plays a big role in determining value. Attorneys need to know what the fair market value is of the business. How much would an interested outside buyer bid to purchase the company? If it would be challenging to find a buyer, even if the business is successful, that can lower its value.

Contact Family Law Attorney Jeffrey M. Bloom, West New York

It can take a long time to determine the business interest value in the case of a divorce, which is why it’s a must to have experts including divorce attorneys working for you. Details of the business will vary, but to ensure a fair valuation and division, the first step is contacting Bloom Law Office at 855-208-3650.