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How to determine business value in a divorce

New Jersey couples who are ending their marriages may have a great deal of property to divide, including a business that is owned by one or both parties. The first step in dividing a business is to find out how much it is worth. This can be done by getting either a full valuation or a calculation of value.

A full valuation might be necessary if the business is complex or if a judge will be making property division determinations. A full valuation is more comprehensive and accurate, but it may also cost more and take longer. If a couple needs the information for more informal purposes, such as mediation, a calculation of value might be the better choice. It is less precise and not as thorough as a full valuation, but the cost is less and it might be faster.

A couple will need to make a decision about how to value the business based on their specific circumstances. If the couple's negotiations are amicable and both are cooperative, they might be able to work with a calculation of value.

In a high-asset divorce, there may be many assets besides a business to divide. Even in this case, it may be possible for a couple to negotiate property division between themselves with the assistance of their respective family law attorneys. However, if there are other problems such as one person's concern that the other spouse may be hiding assets or a prenuptial agreement that one spouse wants to challenge, then litigation might be necessary. People may want to discuss their goals with their attorneys and form a strategy as to how they might best attain them.

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