Q: my Husband operates a children’s music school business in Carlsbad and has been in the same location for 18 years. He provides music lessons to many of the neighborhood children. We are going through a divorce and he tells me the lease will expire in two years so he will no longer have the same location. He claims there are no other locations with the same financial advantage so he thinks the best thing to do is close the business. What happens to the business value? Can he just close the business?
A: If the lease expires and the business is not viable in another location then the value of the business is seriously impacted. If the business can only operate for another two years than its value is discounted because the future earnings are limited to two years. If he is able to move the business then the community value of the business will be impacted by the costs of the move, the likelihood of continued patronage of the existing school children and whether the new location will attract a greater or lesser number of potential students. All of the issues should be addressed by a forensic business evaluator in determining the community value of the business so your one half interest can be accurately ascertained. The experienced attorneys at Burke & Domercq, APC, APC. in Carlsbad help men and women with divorce questions and provide pathways to resolution of divorce disputes. Call now for an appointment: www.dburkelaw.com