Why Is a Business Valuation Important During a Divorce?
In this article, Warren Sacks’ firm of White Zuckerman Warsavasky Luna and Hunt posted a blog that talks about the importance of a Business Valuation while going through a divorce. Even though business valuations are more typical during litigation, it is often helpful to have a valuation prepared while participating in mediation and/or collaborative divorce.
The process is a little different in the sense that the business valuator would be neutral to both clients and the clients have the ability to direct the business valuator in the type of valuation being prepared, i.e. a general idea or a more complete business valuation.
“When you find yourself amid a divorce or separation, it is hard to know what to do first, especially when it comes to dividing you and your spouse’s financial assets.
And if you and your spouse own a business or professional practice, it will be one of the areas that will go under the financial microscope during the divorce process.
For decades the legal community has relied on the abilities of accountants to assist them in understanding and analyzing financial issues related to family law and the marital separation process.
In divorce proceedings, these accountants, known as forensic accountants, specialize in preparing documents and reports for parties going through marital dissolutions.”
For more information on business valuation, contact us at 818-933-4504.