Valuation & Division of Business
Attorneys in Bend, Oregon
Division of property is one of the major divorce issues that must be resolved before a divorce can be finalized. When both parties have interest in the business, asset division in a divorce can be quite complicated. Before a family business can be divided, proper steps must be taken to determine its actual value. If you are thinking about divorce and want to know how your business will be valued and divided, consulting with an experienced Oregon family law attorney is crucial.
At Haskett Williams Monaghan Attorneys at Law, we are committed to offering comprehensive and knowledgeable guidance to clients in business valuation and property division-related matters. As your legal counsel, we can work to understand your specific situation and enlighten you about the various approaches to evaluate your business. Our legal team can explore your options to divide the business and help you make informed decisions.
Haskett Williams Monaghan Attorneys at Law proudly serves clients across Bend, Oregon, and the surrounding areas of Sun River, Redmond, Sisters, and Prineville. Set up a consultation with us today.
Valuation of Business
Business valuation is the general process involved in determining the fair economic value of an entire business entity. It involves adding business assets and revenue and subtracting taxes, debts, and liabilities. Valuation of the business is often required to establish partner ownership, determine sale value, and for division of property in a divorce.
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How Is Business Valuation Done?
In order to ascertain the fair economic value of a business entity, you will add business income and assets, including equipment, property, and inventory, and then subtract any debts, taxes, or liabilities. Generally, there are three common methods used for business valuation. These include:
The Income Approach
To determine the fair value of a business using the income approach, you will use its current value and future earnings to assign a value to the business. Thus, you can use the income statement on the tax return for the valuation of the business.
The Market Approach
In the market approach, you can determine the fair value of a business by assigning a value or estimate using the current industry or market standards. Essentially, you will have to compare the company to other business establishments in the same industry, market, or sector.
The Asset Approach
You can value your business by evaluating the company's assets. In the asset approach, you will consider the business's intangible and tangible assets. Intangible business assets include intellectual property, copyrights, patents, and trade secrets. Tangible business assets include property, equipment, inventory, investments, vehicles, and cash. The value of these assets will be used to determine the value of your business.
An experienced attorney can help you understand the benefits and drawbacks of each business valuation method and determine the best way to evaluate and divide your family business.
Division of the Business
Oregon is an equitable distribution state. This means that a couple's marital assets will be divided equitably and fairly between both parties, but not necessarily equally. In order to divide a business in a contested divorce, the court will consider the following factors:
whether one party started the business prior to the marriage
whether one party invested more resources and time into the business
the tax consequences of the business sale or transfer on either party
whether one party can buy out the other party
whether one party borrowed from family funds to buy assets or equipment for the business
each party's ability to earn a similar income outside the business
each party's contributions and value added to the business, such as customer relationships and professional qualification
An Oregon divorce attorney can evaluate every aspect of your unique circumstances and help you understand your options.
Options for Divorcing Spouses
Here are some options that may be available to divorcing spouses:
The party with greater involvement will receive the business and compensate the other party.
One party can buy out their ex-partner.
You can sell the business and divide equity between both parties.
The family business can be divided (co-owners).
A seasoned lawyer can determine the right option for your specific situation and guide you through the legal procedures involved.
Work With a Practiced Family Law Attorney
Valuation and division of a family business in an Oregon divorce usually involve several complex procedures. Determining the fair economic value of a family business with huge potential and dividing the assets can be overwhelming. Getting proper guidance from a family law attorney is essential.
At Haskett Williams Monaghan Attorneys at Law, we are ready to guide clients through the complexities of business valuation and division in a divorce. Our reliable legal team can work together with qualified forensic accountants and tax professionals to review your business information and financial statements to determine the actual value of the company. In addition, we will walk you through the property division process, help resolve pending divorce issues amicably, and make your transition as seamless as possible.
Valuation & Division of Business Attorneys in Bend, Oregon
If you need assistance in evaluating and dividing your family business in a divorce, contact us at Haskett Williams Monaghan Attorneys at Law to schedule a simple consultation. Our attorneys can offer you the personalized legal counsel and advocacy you need in your business valuation, asset division, and divorce proceedings. Our firm proudly serves clients across Bend, Sun River, Redmond, Sisters, and Prineville, Oregon.