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Determining what a business is worth during divorce

If a New Jersey couple is getting a divorce and one or both of them owns a business, it will usually need to be divided along with other shared marital property. A skilled valuation analyst can determine the value of the business so this division can take place.

How accurate this valuation needs to be depends on the circumstances. The couple must choose between a calculation of value and a full valuation. The full valuation is more expensive, more time-consuming and more accurate. However, it might be necessary if a third party, including an arbitrator or a judge, needs the information. If the couple plans to use it in mediation, it may be possible to do a calculation of value.

The degree of accuracy needed may also be determined by the size and complexity of the business. A large enough business may need a full valuation no matter how the information will be used. On the other hand, in some cases, the choice could be affected by how the two spouses are negotiating with one another. If the atmosphere is generally one of cooperation, it may be possible to use a calculation of value.

In a high-asset divorce, a business may be only one of a number of shared marital properties for which division will be complex. In dividing a business, the couple may choose to sell, they might continue running the business together or one might run the business while the other continues to receive income from it. Having real estate and other property in other states or countries, offshore accounts and other assets may mean that the divorce is time consuming, but the couple still may be able to negotiate an agreement that suits them.

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