There are several key points to keep in mind when a business will be a part of any divorce settlement. The first of which is to obtain an accurate valuation of the company. This is usually approached in three main ways: income, value of the company and market influences. It may be difficult for the spouse who is not actively involved in the running of the company to ascertain its true worth. An experienced professional could be consulted who could then review the books, conduct a thorough inspection and interview key personnel, which will help provide a clearer picture of the asset’s overall worth.

The second point to consider is ensuring that one does not attempt to seek double access to income streams. If one is offered a percentage of future profits from a business, then it may not be appropriate to seek additional financial support from a former spouse. Lastly, it may be beneficial to consider that a spouse may attempt to undervalue the company in an effort to obtain a more favorable settlement. Having an accurate accounting of the profits and liabilities may prevent such attempts to falsify the actual worth of the company.

There are measures one can take to ensure that a high asset divorce is as equitable as possible. Kentucky residents have access to financial experts who can assist them in discerning the true value of all assets that will be a part of the settlement agreement. In addition, the assistance and guidance that an experienced divorce attorney can provide may make all of the difference in establishing a sound financial foundation moving forward.

Source: wealthmanagement.com, “Three Pressing Issues For Business Owners Going Through a Divorce“, Mark S. Gottlieb, Jan. 30, 2018