Owning a successful business is often the culmination of many years of dedication, toil and sacrifice. For many Pennsylvania residents, building their business and supporting that growth has been the primary focus of their adult lives. When a divorce seems inevitable, many business owners are understandably concerned about how the property division process will impact their bottom line.
One of the first steps that must be taken to prepare for divorce involves obtaining a professional business valuation. This is an estimation of wealth that is completed by a highly skilled financial professional who has experience in assessing business assets. That process begins by reviewing all financial documentation that is available.
The next step in business valuation is to assess the current market conditions. Over the years, market conditions can have a marked impact on the worth of a business. Other factors include the nature of the business, the existence of stock and intangible assets such as reputation, customer contact lists and customer loyalty.
Once a valuation has been completed, both Pennsylvania spouses will be provided with a breakdown of the business valuation report. That information will allow them to move forward in the property division process. The manner in which business assets are divided depends on current state law, as well as the needs and goals of both parties. Fortunately, there are a number of creative solutions that can allow both spouses to move forward with a high degree of financial stability, while also allowing the business to continue to run.
Source: dailyherald.com, “What will happen to my business if I get a divorce?“, Miriam Cooper, Sept. 6, 2017