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How may a business valuation affect a division of assets?

On Behalf of | Sep 10, 2021 | Firm News |

Connecticut’s divorce laws require an equitable division of your assets including a business started during marriage. A professional appraisal of your enterprise can provide a fair market value of its worth.

Your company’s value may help you to negotiate a fair settlement when dividing marital property with your soon-to-be ex-spouse. As noted by the U.S. Chamber of Commerce, an assessment also provides options such as buying your spouse’s fair share or selling it.

A business’s market value may trade between spouses

To provide a dollar figure, a professional evaluator conducts an analysis of your business’s market value. This method offers a straightforward current worth of your enterprise by comparing it to similar ones that recently sold.

An appraisal may determine that your company’s market value would sell for the same price as another Connecticut business that offers the same products. By dividing this figure equitably, for instance, you may negotiate with your spouse on “trading” other marital property of the same worth to keep 100% of your enterprise.

A business valuation may provide a realistic selling price

Some owners decide to sell their business when they divorce. A professional evaluation of your company’s assets and investments may offer a selling price that you could use to attract a buyer. By reviewing your company’s balance sheet, total assets and liabilities, you may receive a valuation based on your business’s expectation of remaining active.

If you prefer to instead liquidate your assets and pay off outstanding liabilities, your enterprise’s net cash value may provide a sales price. You may also choose to use the net value as a bargaining chip to trade marital property during a divorce and reach a favorable settlement. Whether you use your company as a negotiating tool or decide to sell it, Connecticut divorce laws require a fair division of marital assets.