If you own a business, then it goes without saying that it is an important part of your livelihood. If you are going through a divorce, however, the ownership and even the continued operation of your business might be in question.
Some or all of your business is likely to be marital property subject to the division of marital property under Minnesota law. An accurate business valuation can provide the leverage you need to negotiate for a favorable outcome regarding your business following the divorce.
What is a business valuation?
Business valuation is a professional service provided by an unbiased appraiser who will take stock of your business, its finances, its assets and any associated real estate to determine its overall value. Knowing the value of a family business is crucial for fairness and equitability during the asset division process of a divorce. It is also good practice for both spouses to conduct separate valuations for the sake of impartiality, even if only one spouse is the current owner.
How does a valuation protect your business?
An unbiased valuation can be a powerful negotiation tool if you and your spouse are open to mediating divorce matters outside of court. With the true value of your business apparent for all to see, you can arrive at a compromise of keeping the business intact under your ownership in exchange for other marital assets that your spouse might wish to keep after the split. Without such an agreement, it is possible that you might have to liquidate the business entirely and split the finances with your spouse.
The fate of a family business is rarely certain at the outset of a divorce. With a business valuation, however, you have options for how to best keep your operations and livelihood intact.