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Business valuation and divorce can be a contentious issue when an ownership interest in a business is part of the marital assets to be divided in a divorce. Although assets and debts are divided equitably between the spouses under North Carolina law, the spouse who is “buying out” the other spouse and providing child or spousal support may try to reduce his or her losses. A strategy may be minimizing the apparent value of the business prior to and during the divorce.
As discussed in an article in Forbes, it is not uncommon for a business-owner spouse to engage in financial maneuvering to make a business appear less profitable than it actually is when divorce is pending. This frequently occurring phenomenon has been dubbed “SIDS” or “Sudden Income Deficit Syndrome” by divorce professionals, according to the article.
If you are facing a divorce that involves valuation of a business, it is in your best interest to consult with a knowledgeable divorce attorney as soon as possible. When you work with Charles R. Ullman & Associates, you will have a lawyer you can trust who is certified as a Specialist in Family Law by the North Carolina State Bar and well-versed in the complex process of marital asset division.
Business valuation in a divorce can be a complex process, often requiring the use of experts and involving a number of factors, including:
The two most commonly used methods of valuation are:
If a business interest is part of your marital assets and divorce is around the corner, you should be aware of the following indications of “SIDS,” as described in the Forbes article:
At Charles R. Ullman & Associates, our seasoned Raleigh divorce lawyer stands ready to assist you with every aspect of divorce, including distribution of marital assets and business valuation. Contact our firm today to schedule a consultation to address how your business ownership will be part of your divorce settlement.
Last updated: April 14, 2015
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