Greensburg Business Valuation Lawyer
When it comes to divorce, Pennsylvania is an equitable distribution state. That means when you divorce, all marital property will be divided fairly and equitably. It doesn’t mean everything is split down the middle 50/50, like a community property state. If you have ownership in a business, it could be subject to Pennsylvania’s marital distribution laws. Before you consider how to divide any assets like a marital business, you need to establish the actual value first.
To figure out the business’s value, you need to speak with an experienced Greensburg business valuation lawyer. Our team at Bunde & Roberts, P.C., has over 100 years of combined experience dealing with complicated asset portfolios in a divorce. We can help you work through the challenging familial and financial issues that arise during your divorce.
Protecting Your Valued Pennsylvania Business Interests
Like other marital property types, only that property acquired during the marriage or added marital value will be classified as marital property. What that means is the business valuation amount will only be calculated from the date of your wedding to the date you separated or the date of distribution, whichever is deemed appropriate.
The process of business valuation is complicated, which is why you need an expert. Depending on the type of business, you may need anyone from a real estate expert to a forensic accountant.
Options for Valuing a Business in a Pennsylvania Divorce
There are several options we use to value a business. Before coming up with a value, you must decide on how the process will work. You and your spouse can choose a neutral business valuator together, but you both have to agree to rely on the expert’s opinion. Another option is for each spouse to retain their own business valuation expert. This expert will ensure that they include their own client’s viewports and interests in the valuation.
When it comes to deciding on the value, there are three main methods that business valuation experts typically use:
- Asset-based approach: Compares the business assets to its liabilities
- Income approach: Focuses on the business’ net present value of the cash flow
- Market approach: Compares apparent value with other companies that are similar in industry, location, and size
Each method relies on specific techniques to find the right valuation using different factors. Depending on the circumstances and business type, one procedure might work better than another in some cases.
One mistake some people make during the divorce is insisting that the company accountant or attorney develop the valuation. A neutral third-party should conduct the valuation if you want their findings to carry any weight with the family court judge.
At Bunde & Roberts, P.C., we have developed relationships with many independent business valuation experts. Trust us to find the right expert to make sure your valuation is done correctly.
Get Expert Advice from a Knowledgeable Greensburg Business Valuation Lawyer
Working with a Greensburg business valuation attorney is crucial if you have a business that is considered marital property. Whether you have a small family business, a closely-held corporation, or other business interests, our legal team is here to help. For more information on how a Greensburg business valuation lawyer can help you, contact Bunde & Roberts, P.C., today at 412-391-4330 to schedule an initial consultation.
