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Jones Family Law, LLC

Jones Family Law, LLC
1610 Des Peres Road ,
Suite 340 St. Louis,
MO 63131
1610 Des Peres Road ,
Suite 340 St. Louis,
MO 63131
One of the most critical aspects of a high-asset divorce can be the valuation of a business. From closely held corporations to professional practices, there is no simple formula that can measure the time and effort you put into building your venture. An accurate valuation is imperative to having an equitable divorce agreement.
In addition, an improper valuation could put the continued operation of your business venture at risk. To ensure your business is protected throughout your divorce, you need an experienced attorney on your side that understands how to value a business and handle high-asset divorces properly.
This is where Jones Family Law Group, LLC’s dedicated attorneys step in. Do not hesitate to reach out to our firm when you need seasoned legal guidance on valuing a business in a Ballwin high-asset divorce. Let us help you protect yourself and your interests today.
There are different ways to place a value on a business. In a divorce, a business is worth its fair market value. Fair market value is determined by the price a neutral third party would be willing to pay for the business from a willing seller. Often, there is a major discrepancy between what a small business is worth to the owner compared to what a casual buyer might agree to pay for it.
Placing a value on a business in the divorce process requires much more than crunching numbers or evaluating profit margins. Companies can have an array of assets like intellectual property to consider. Other businesses or professional practices might have substantial goodwill in the community. This goodwill can be difficult to measure, but it can play a substantial role in explaining the value of a business.
An experienced attorney in Ballwin will consider all this information (and more) when valuing a business in a high-asset divorce. They will also consider information such as market trends, financial data, and other factors that can help establish a comprehensive valuation.
With all of the different methods for placing a value on a business, it should come as no surprise that two qualified experts might come to a very different view on what a company is worth. For this reason, it does matter who attempts to value a business during the divorce process.
In some cases, spouses might simply try to agree on the value based on their own knowledge and experience. While this might be viable for smaller or simpler ventures, the reality is that this approach is risky. A mistake in valuing a business could result in an unfair outcome in the divorce or put the venture at risk moving forward.
The smartest option available is hiring an attorney to assist you through the valuation process. If necessary, a Ballwin divorce attorney could turn to trusted financial experts to further review assets, pour over financial statements, and identify the goodwill a business has in its community.
There are different options for hiring attorneys for this process. Some couples choose to jointly hire a mediator to handle this aspect of their divorce. However, it is often a good idea for both spouses to rely on their own team to put a value on the business independently of each other.
The process of valuing a business in a Ballwin high-asset divorce can have a ripple effect across the entire case. An inadequate or inappropriate valuation could prevent you from receiving the property distribution or divorce outcome you deserve.
Further, an improper valuation could put the company at risk. To protect yourself and your business, reach out to Jones Family Law Group, LLC, to schedule a confidential consultation.
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