Building a successful business takes an enormous investment of time, energy and financing. For many Colorado residents, those expenditures are at risk of loss during a divorce. In order to avoid excessive losses during the property division process, it is necessary to obtain a thorough evaluation of all business assets.
Most business owners have a working idea of what their business is worth. However, when divorce is at play, it is imperative to have a thorough business valuation completed by a professional. Fortunately, there are numerous financial professionals who specialize in placing a value on various business holdings. Owners can assist in that process by collecting as much information as possible about the assets related to the business venture.
Each business owner has a unique mix of business assets. There is no such thing as a one-size-fits-all estimate of value. Some businesses have significant real estate holdings that must be valued, while others may center on the issue of intellectual property. Some businesses also have a great deal of value tied up in their current and past client lists, long range contracts and investments.
Regardless of the nature of a Colorado resident's business interests, outlining the full value of the enterprise is critical in the early stages of the divorce. It is impossible to negotiate a fair property division outcome unless both parties are aware of the value of each asset under consideration. Hiring the services of a business valuation professional is a great way to get started toward a fair division of marital wealth.
Source: Forbes, "How Divorcing Women Entrepreneurs Can Get What They Deserve", Kerry Hannon, Nov. 2, 2017