How Will My Family Business be Valuated During my Divorce? Why Hiring an Attorney Matters

How Will My Family Business be Valuated During my Divorce Why Hiring an Attorney Matters

A family business is built upon hard work and dedication. Determining how a divorce impacts such a business depends upon a variety of factors. At the Pedrick Law Group, APC, our team understands California divorce law and can work with you for the best outcome possible. If you face a divorce involving a family business, a lawyer from our team can help you. Contact us now for a free case evaluation.

Understanding Business Valuation

A business valuation determines the economic value of a business.  The process involves deciding the fair value of the business as a whole. In a divorce, this value is essential for both sides and is sometimes a significant financial component of the divorce.

The process involves:

  • Determining the business’s current worth
  • Using objective measurements
  • Evaluating all aspects of the business

A Certified Public Accountant (CPA) typically manages a business valuation. A lawyer from the Pedrick Law Group, APC, can evaluate your business valuation or help you to acquire one for your divorce.

Receiving a completed business valuation is an integral part of the divorce process. However, it is a challenging and sometimes difficult report to understand and process. If you have a family business and divorce is a reality, get the help you need by contacting us today.

Family Business and Divorce: Three Key Factors 

While a business valuation involves the entire business, there are three different approaches your valuation may take:

  • Assets: Business assets, like vehicles, are a vital component of a business valuation. By subtracting liabilities associated with the assets, the remaining sum provides you with the value of the business. Assets are both tangible — and therefore easy to identify — or intangible, making them harder to identify.
  • Income: The cash flow and profits of a family business are other approaches to a valuation. Past profits can serve as a predictor of future income, something helpful for a divorce. The income approach is one of the most common types of business valuation.
  • Market comparison: A market approach compares the family business to a similar business that was recently sold. This approach is generally less common in divorce cases due to the difficulty of finding a good comparison.

At the Pedrick Law Group, APC, we understand that legal terms and processes can overwhelm you. Facing a divorce — and the life changes that come with it — is stressful enough. Hiring a member of our team means you can focus on your daily tasks, knowing we are hard at work for you.

A business valuation is a complex yet crucial component of a divorce involving a family business. If your divorce involves the division of a family business, the different approaches are worth considering.

No one divorce involving a family business is alike. The outcome of a friend’s divorce may differ greatly from your case. Remain focused on your situation with help from the Pedrick Law Group, APC.

Your California Divorce Attorney

A divorce involves many factors, such as the division of real estate and child custody. No matter how civil your relationship with your ex or how volatile, protecting your best interests and those of your children is paramount.

A business evaluation can help you better understand the assets and profits of a family-owned business. As highly skilled California divorce attorneys, we can review the information with you and discuss your best options for moving forward.

If your spouse contests the divorce, we can aggressively fight for a fair settlement on your behalf. If the negotiation process fails, we stand ready to take your case to trial.

Divorces are emotional and life-changing. You owe it to yourself to protect your best interests by hiring a California divorce attorney. Whether you invested time, money, or support for the family business, you know where it stands financially. A business valuation can make that possible.

Contact the Pedrick Law Group, APC for a Free Case Evaluation

A divorce is stressful enough — a family business in the mix can make the process even more complex. At the Pedrick Law Group, APC, we put our experience to work for you.

We carefully review your information to determine the best approach. The knowledge that someone is protecting your best interests affords peace of mind during a very stressful time.

A free case evaluation is an essential first step toward working with our office. If you face a divorce involving a family business and/or child custody, the Pedrick Law Group, APC, can help you.

Get Started Today

There is no way to predict the outcome of your divorce; however, we strive to secure the best outcome possible. A member of our team will keep you informed regarding the latest developments in your case.

Protecting your best interests during this life transition is vital for your future. Reach out to the Pedrick Law Group, APC, now if you have a family business and face a divorce.

We treat our clients with the utmost respect and care.  Questions and concerns are always welcomed as we want you to feel comfortable working with us. The lawyer you hire will ensure that a total valuation of your family business is complete and thorough. Your lawyer will also work with you on other matters relating to your divorce.

Whether your marriage involves a few years or several, fight for what you deserve. Time is of the essence, for the sooner we can review your information, the faster we can protect your interest in the family business.

Help us to help you by providing our team with as much information as possible. Gathering necessary documents, pictures, and other helpful items saves us time. Let’s get started protecting your rights when it comes to your family business. Contact the Pedrick Law Group, APC, today for your free case evaluation.

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