Determining the Worth of a Marital Asset
Divorce can be complicated and emotionally charged, particularly when dividing assets. One asset that often requires special attention during divorce is a business that one or both spouses own. Determining the value of a business can be challenging, but it is essential to ensuring a fair and equitable settlement. This article will explore the business valuation in divorce settlements and the factors that can affect a business's worth. Why Is Business Valuation Important in Divorce Settlements? In most jurisdictions, marital assets are subject to equitable distribution in divorce settlements. This means that assets acquired during the marriage, including businesses, are divided fairly between spouses but not necessarily equally. A business's value can significantly impact the distribution of marital assets, particularly if one spouse is awarded the business. At the same time, the other receives a cash settlement or other assets. Business valuation in divorce settlements is esse...