The most factually and legally complex area of divorce law is business valuation. In the 1980s and 1990s huge strides were made in business valuation techniques due in large part to personal computers and the ability of business appraisers to develop intricate spreadsheets. These spreadsheets and “canned” computer valuation programs have allowed valuators to create models for valuing businesses which would have been virtually impossible before the advent of the personal computer. An additional reason for the progress in business valuation technique has been the mergers and acquisitions which occurred during this same period. These mergers and acquisitions provided a database to more accurately gauge the value of businesses based on actual transactions. Moreover, case law regarding business valuation in divorce cases is more complex than in other areas of law because the states have different positions on whether the business appraiser must differentiate enterprise goodwill from personal goodwill in valuations of closely held businesses.
Business Valuation in Divorce Cases – 101 – What Any Family Law Lawyer Needs to Know to Competently Represent Your Client
Published Date: 2013
Number of Pages: 35