Business Valuation and Divorce

In Wealth by Elizabeth Stephenson

The separation and divorce process is tragic on an interpersonal level in that it ends a long-term relationship that was once full of hope. Adding insult to injury, the level of animosity in a divorce can escalate when it comes to money. A common matter of dispute regarding money occurs when a family business is involved. The heart of the legal conflict comes in the answers to two questions: (1) what is the value of the business; and (2) how will it be distributed in the divorce? Fair Value of the Business Assessing the net value of a business truly depends on the size and complexity of the business. In North Carolina, the general starting point in dividing any marital property is an equal division of the net value of …