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Why is the Valuation of a Business Important in a Contested San Diego Divorce

On Behalf of | Mar 18, 2022 | Professional Practice & Business Ownership

Why is the valuation of a business important in a contested San Diego divorce?  The issue of business valuation is legally and financially quite complex.  Each party in a divorce often has opposing interests when it comes to the division of a business or professional practice.  In essence, if the company is in whole or in part considered to be community property and the business owner wishes to keep their company after the divorce they must “offset” their former spouse’s community interest in the business.

This is the primary issue which makes the valuation of a business important in a contested San Diego divorce.  The party who wishes to keep their company usually wants the valuation to be as low as possible.  It is usually in the best interests of the spouse of a business owner in a divorce to seek the highest valuation possible.  Higher valuation of the community’s interest in the business will require a greater share of community property or a secured interest to offset the non-owner’s share in the asset.

This is why it is important to work with the Certified Family Law Specialists at Burke & Domercq.  Our attorneys have decades of experience in complex contested San Diego divorce cases such as the accurate valuation of a business during property division.  There are several legal, viable ways to accurately assess the valuation of a business interest.  Each party may employ their own expert to establish the valuation, or the Court may appoint it’s own expert.

No business owner looks forward to having their financials crawled through by a forensic accountant or facing the cost to preserve their business ownership after the divorce.  The spouse of the business owner may be concerned about misrepresentations regarding income, expenses or other attempts to lower the actual value of the business.  These are a few of the issues which make the accurate valuation of a business important in a contested San Diego divorce.

If you are a business owner facing a divorce, or the spouse of a business owner who is concerned about seeking a fair valuation we invite you to to review the strong recommendations of former clients and the legal industry, protect your interests and contact us or call 760-389-3927 to schedule an appointment for a safe, confidential and private consultation with one of our experienced and proven Certified Family Law Specialists.