Anaheim Divorce Business Valuation Lawyer

Anaheim Divorce Business Valuation Attorney

There can be immense challenges when dealing with the intricacies of a divorce, especially when it comes to dividing complex assets like a business. One of the most difficult aspects of dividing a business is determining the correct value of that business, which you may not be able to do alone. With the assistance of an Anaheim divorce business valuation lawyer, you can secure an accurate valuation of your business.

At Moranda Law Firm, APC, we understand that business owners may face unique problems during divorce proceedings. Our legal team has successfully handled a variety of family law cases involving complex divorces and asset division. Our clients are given personalized attention and exceptional service, ensuring their goals are always a priority.

Business Valuation in an Anaheim Divorce Case

A critical part of the divorce process in Anaheim, California, is the equal division of marital assets, otherwise known as community property. A business may be considered community property if:

• It was started by both spouses
• It was started by one spouse during the marriage
• Both spouses made contributions to the business, such as time, skills, money, or
• The value of the business increased during marriage because of the efforts of both spouses, even though it was owned by one spouse before marriage.

When one or both spouses hold ownership of a business or have business interests, business valuation becomes essential in a divorce. Business valuation is the process of calculating the economic value of a company or business using different methods. When done well, a business valuation can protect the business as a whole and also protect your interests by ensuring the marital assets are divided equitably.

If marital funds, efforts, or other contributions were used to grow a business you inherited or owned before marriage, the business could be considered commingled property. A business valuation can help determine what portion of the business’s value can be attributed to your separate property and what portion can be attributed to marital contributions, making it marital property. That portion of marital property will likely be subject to division.

How the Value of a Business Is Calculated

Valuing a business involves a full assessment of the company’s financial performance, liabilities, assets, and potential for growth. The following are common approaches to determining a business’s value:

• Income-Based Approach – This approach uses multiple methods to estimate the current value of your company based on the future income it could potentially generate.
• Market Approach – This approach determines the value of your company by comparing it to the prices of similar companies that have recently been sold on the market.
• Asset-Based Approach – This approach calculates your company’s value by adding the value of its assets minus its liabilities.

There are various factors a professional business appraiser may consider when deciding which approach or method to use for your business. They may even use multiple methods to get the most accurate business value.

Preparing for a Divorce Business Valuation

To effectively navigate the valuation process and work towards an equitable division of your business, there are a few things you can do to prepare yourself:

• Familiarize Yourself With California Divorce Laws – Understand the community property laws in California. Although the law is seemingly straightforward, there are several situations where the application of the laws can become complicated.
• Work With Professionals – Collaborate with an experienced family law attorney, accountant, and business valuation professionals who are familiar with local laws and business operations that could affect the valuation process.
• Address Any Marital Agreements – If you have a prenuptial or postnuptial agreement that references your business, consult with a lawyer to learn how the terms of your agreement may impact valuation and division.
• Prepare for Potential Disputes – Divorce cases can sometimes lead to disputes when they involve business valuations. Be prepared to discuss different options for dispute resolution, such as mediation.

FAQs

Why Do I Need a Divorce Business Valuation Lawyer?

You need a divorce business valuation lawyer to ensure your business interests are protected during the divorce. A lawyer can help you prepare for the valuation process, see to it that your business is accurately and fairly valued, give you advice on dividing the business, and help resolve any disputes.

How Long Does a Divorce Business Valuation Take?

The duration of a divorce business valuation can vary depending on the financial situation of a business, how complicated it is, and how much each spouse cooperates. For a smaller business with simple financials, the valuation process may be much shorter. On the other hand, a complex business, such as one with different locations or complicated financials, may take longer to be evaluated. Disputes between spouses can extend the timeline for both.

What Are Some Challenges of Dividing a Business in a Divorce?

Some potential challenges of dividing a business in a divorce include disagreements over the value of the business, difficulties deciding on a method of division, the effect on how the business will operate in the future, and potential tax implications. To properly handle these challenges, it is crucial to work with an experienced attorney who is familiar with business valuations, can provide guidance, and can help make sure your business is divided fairly.

How Much Does It Cost to Hire a Divorce Business Valuation Lawyer in Anaheim, CA?

The cost of hiring a divorce business valuation lawyer in Anaheim, CA varies based on many factors, including the complexity of your business and the divorce, as well as the lawyer’s experience. In many cases, you can expect to pay a retainer fee, which is an advanced payment for services the lawyer will provide. You should also consider the cost of the business valuation itself, which is determined by the size and complexity of your business.

Consult With Moranda Law Firm, APC, in Anaheim

Hiring a divorce business valuation attorney can make dividing a business and business assets much easier. Invest in your financial future by contacting our office for a case evaluation. We can provide you with the advocacy and support you need in your divorce case.