Almost all business owners think that the business would be worth nothing without them. Maybe the business owner is the primary sales person or driver of the business, or maybe they have all the relationships with all of the clients, or maybe they have special training or a proprietary process that makes them unique. I think most business valuation people understand that the business is heavily reliant upon the main owner, especially in small businesses, but that usually does not mean that the business is worth nothing if the owner steps aside.
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If you own a business and are getting divorced you may consider your current CPA to value your business. Here are some questions to ask!
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The income approach considers historical income, future revenues of a company, the earning potential and also capital requirements, or how much will be needed to invest in the building and equipment to support future revenue growth.
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In the divorce litigation world, attorneys will talk about maintenance, which is the same as alimony or spousal financial support. It is the payment from one spouse to another for household expenses.
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What happens when you own a company and you file divorce papers? Well the first step is to contact an attorney who you trust to handle your case.
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