DIVORCE
Business Valuation for Divorce
Business valuation services for divorce covering fair market value of marital business interests, equitable distribution, and litigation support for family-court proceedings. Equity Business Valuation Services prepares USPAP-compliant valuations of C-corporation shares, S-corporation stock, LLC membership interests, and professional practices nationwide.
How a Business Valuation Supports Equitable Distribution in Divorce
When a marriage that includes a privately held business ends, the court needs a defensible value for that business before the marital estate can be divided. A closely held company, a professional practice, or an interest in an LLC or partnership is often the largest asset in the estate, and its value is rarely obvious from a tax return alone.
Our appraisers determine the fair market value of the business interest using recognized income, market, and asset approaches, then apply the standard of value your state's family court requires. Where the facts support them, we analyze discounts for lack of control and lack of marketability, distinguish enterprise goodwill from personal goodwill, and separate active from passive appreciation so marital and separate property are clearly identified. Every conclusion is documented in a report prepared in accordance with USPAP.
Engagements are quoted as a fixed fee, confirmed before work begins. Tell us your court or mediation date and we will confirm up front whether we can meet it. You can review our business valuation pricing before you request an appraisal.
WHAT WE VALUE
We Value C-Corporations, S-Corporations, LLCs, and Professional Practices in Divorce
Equity Business Valuation Services appraises all types of privately held business interests that enter the marital estate in a divorce, from single-owner professional practices to multi-member operating companies.
Closely Held C-Corporation Stock
Fair market value of shares in privately held C corporations, with control and marketability discounts applied where the facts support them.
S-Corporation Shares
Valuations of S-corporation stock that account for the tax attributes and distribution rights affecting value in a marital estate.
LLC & Partnership Interests
Fair market value of LLC membership interests and limited partnership interests, based on the governing documents and market evidence.
Professional Practices
Valuations of medical, dental, legal, and accounting practices, including the analysis of enterprise versus personal goodwill.
Family & Jointly Owned Businesses
Fair market value of family businesses and companies owned jointly by both spouses, with each party's interest clearly identified.
Minority & Non-Controlling Interests
Analysis of non-controlling positions, including discounts for lack of control and lack of marketability where supportable.
HOW IT WORKS
How We Prepare Your Divorce Business Valuation
- 01
Share Your Case Details
Tell us about the business, each spouse's ownership, the valuation date the court has set, and any deadlines so we can scope the engagement.
- 02
Document Review
We gather financial statements, tax returns, the cap table, and governing documents to establish the basis for value.
- 03
Valuation & Analysis
Our appraisers apply the income, market, and asset approaches, determine supportable fair market value, and address goodwill, appreciation, and any applicable discounts.
- 04
Report & Testimony Support
We deliver a signed, USPAP-compliant report suitable for negotiation, mediation, or trial, and our appraisers can support the conclusions if testimony is required.
CREDENTIALS
Credentialed Business Valuation Appraisers
Our appraisers hold credentials with leading organizations such as the ASA and NACVA, and every report is prepared in accordance with USPAP.
ASA-Accredited Senior Appraisers
NACVA Members
USPAP-Compliant Reporting
COMMON QUESTIONS
Divorce Business Valuation Questions
What standard of value applies to a business in a divorce?
The standard of value depends on your jurisdiction. Most states apply fair market value in divorce, while others use fair value, which may exclude certain discounts. We apply the standard your state's family court requires and document the basis for the conclusion so it holds up in negotiation or at trial.
How is the appreciation of a business divided in a divorce?
Courts often distinguish active appreciation, which results from a spouse's efforts during the marriage, from passive appreciation driven by outside market forces. Active appreciation in a business is frequently treated as marital property subject to division, while passive appreciation on separate property may not be. We analyze the financial history to separate the two and document each conclusion.
Does business goodwill count in a divorce valuation?
It depends on your state and the type of goodwill. Enterprise goodwill, which is tied to the business itself and transfers with a sale, is commonly treated as a marital asset. Personal or professional goodwill, which is tied to an individual owner's reputation and skill, is excluded in many states. We analyze the business to separate the two and value each appropriately.
Can one appraiser value the business for both spouses?
Yes. A single, jointly retained neutral appraiser is common in divorce matters and is often the most cost-effective approach, because both parties rely on one independent valuation. We can also be retained by one spouse or attorney when a party wants its own analysis. In every case the report is prepared to the same USPAP standard.
How long does a divorce business valuation take?
Business valuations for divorce typically take three to five weeks, depending on the complexity of the entity and how complete the financial records are. Expedited delivery, as fast as 11 business days, is available. Tell us your court or mediation date when you request an appraisal and we will confirm whether we can meet it before work begins.
Get a Defensible Value for the Business in Your Divorce
Request a USPAP-compliant business valuation prepared to support equitable distribution in your divorce.