One of the more complex assets to divide can be a business. There are cases where the business has been growing at a good rate, and there are debates about whether to use current income or projected income, and at what rate of growth, if projected. Like child custody, business ownership is emotional. When spending years or decades of your life building something, and then being told you must give half of it away, it can be difficult. Equally frustrating is when a partner feels the divorce is a result of too much time and energy put into a business, and then being told they have no rights to this business because they were not directly working in the business, even though they were indirectly supporting the spouse to help improve the business.
There are times when both people want the business as they are equally invested in the success. Sometimes neither want the business because it reminds them of a painful past and they want a fresh start. There are no set right answers here, our job is to work with you, find out your desires and fight for those wishes aggressively and passionately to ensure your future.
The first priority we have in a business case is to help the people fighting for it see the actual value of the business, in dollars and cents. We understand there is a value and a passion past the financial number, it is why the business was formed in the first place. We help to ensure our clients get a fair portion of businesses owned by the community estate. We also help those who own a business not make the common mistake of over valuing their business and ultimately give away other assets on the hopes of a brighter business future.
We Use Professional Business Valuators When Necessary
There are trained professionals who understand the values of businesses, franchises, and the general methods that are used to create business valuations. We use these experts because their testimony is trusted within a court hearing and because they understand how goodwill, trademarks and copyrights factor into the value of a business. In order to be used by the courts, here are some of the qualifications they must possess at a minimum (at least one):
- Accredited Senior Appraiser from the American Society of Appraisers
- Certified Valuation Analyst from the National Association of Valuation Analysts
- Accredited in Business Valuation from the American Institute of CPAs
- Certified Public Accountants
- Master in Business Administration
- Certified Business Appraiser from the Institute of Business Appraisers
We employ the use of professionals like these when building your case because they are the foundation of a solid asset itemization structure. Given that Nevada is a community asset state, hiding assets is never advised. What we prefer to do is to disclose assets properly and then use our negotiation skills as well as possible to ensure you get the very best outcome possible, with no surprises to come back on you in the future.
This is One of the Most Important Reasons for a Prenuptial Agreement
This area is one specifically which needs the attention of prenuptial agreements. Especially when there are multiple partners in a business and one of the partners get married, it is important for those in the business relationship not to count this as community property because it affects the lives of the business partners substantially if this detail is overlooked. Often no one stops to consider the impact of a community property state when they get married because there is optimism when the vows are made. However, the harsh reality is many marriages end up severing and there are businesses that suffer and innocent business partners who suffer. With a proper prenuptial agreement, this is a totally avoidable situation if the business is excluded from the community property with the prenuptial agreement.
There are Many Ways to Go About Dividing the Asset, When Required
If a business is worth $1,000,000 on partner could buy out the other partner for their interests. There can also be profit sharing, or there can be an exchange of assets. Ultimately, there are many ways to divide a business. In most cases, it is a painful cost, as those who run their business love to see it grow and thrive and this can feel like a big setback. We help you work out your situation and negotiate the best possible exit or division of your business asset.
We have expertise helping in cases where businesses are worth multiple millions of dollars. We can help you.