Las Vegas Family Business Valuation Lawyer
If a small business is part of your pool of assets, it will need to be divided in your divorce. Nevada is a community property state, which means that any marital assets you own must be divided equally. This is in contrast to equitable property states, where property is not necessarily split down the middle in a divorce, but divided according to each partner’s personal needs.
Even if you operated the business before you were married, the income from the business is still subject to division during the divorce process because it provided the marriage with part, or even all, of its income. If the business grew in value during your marriage, the value that developed in that time may also be subject to division by the court. In other words, your family business is not considered singly-held property simply because you operated it before you were married. Contact our Las Vegas family business valuation lawyers today for more information.
Determining the Value of your Family Business
Your family business has a market value, which is an important figure to use when dividing it in a divorce. But it is more than a number on paper. It has emotional value to you as well as the value it provides to your community. A business’ rapport with its clientele can figure into its appraisal, so be sure to discuss this with your lawyer as well as what the business means to you on a personal level. You might be able to negotiate a buyout with your spouse or determine a way to continue to operate the business together, merely as business partners.
Dividing your Family Business with a Las Vegas Family Business Attorney
There are three ways to value a business during a divorce:
The Asset Method. In this straightforward valuation method, a business’ value is determined by subtracting its liabilities’ value from its asset’s value. The assets considered include everything in the business, such as office equipment and company vehicles;
The Income Method. With the income method, a business’ value is appraised by examining its historical income trends and projections for the future. The riskiness of the business is also considered in this approach; and
The Market Method. The market method of business valuation determines a business’ value by comparing it to the prices for which similar businesses sold recently. This method is somewhat similar to methods used to appraise home values.
Work with an Experienced Las Vegas Family Business Valuation Lawyer
Your family business is more than just an income stream. It is a part of your personal history and the thought of losing your family business can be a scary, sad thought. Do not assume that getting a divorce means that you will lose the family business. Work with an experienced divorce attorney who can help you determine a legal strategy for your divorce that allows you to keep most or even all of the interest in your family business. Contact our team at Kainen Law Group today to set up your initial consultation in our office.