How can we determine the value of our business?
If you own a business with your spouse in Ohio and you are about to get divorced, then your business will be affected. You will have to, at some point in the process, determine the value of the business. The court must have this information when it comes to dividing your assets. In the event that you have to sell the business, you will also need this information. So, getting your business valued is an important step to take before you get too far into your divorce.
The American Bar Association notes that couples often disagree about the value of a business. It can also be tricky to come up with a value, especially if it involves special skills one of you possess that are required to run the business. For example, if you own a doctor’s office where you or your spouse is the doctor providing care, then without the spouse who is a doctor, there would be no business.
You generally can value a business through three methods. You can use the income approach, asset approach or market approach. It can help to use a professional who understands business valuation to assist with coming up with the figure. You can each hire your own specialist if you want.
The main goal is finding the fair market value, which would be how much the business would be worth to a buyer. This can vary widely. Even appraisers may have different valuations. This information is for education only and is not legal advice.