How do you value a business for purposes of a divorce in Virginia?
When parties to a divorce are business owners, the property division aspects of divorce are much more complex and complicated. In such a scenario, a reliable business valuation must be performed by a certified public accountant (CPA) in order to determine the value of the business for equitable distribution purposes, because the business may have value independent of the other marital assets. Furthermore, a CPA is also required to determine the income of the self-employed spouse(s) for spousal support considerations. Self-employed individuals, such as doctors, lawyers, and accountants who operate their own practices, as well as other business persons and professionals who operate their own businesses, must be prepared to account for all of their income and assets in a divorce. The issue of determination of income of a self-employed individual can be very complicated, and often adds greatly to the complexity of a divorce proceeding. To discuss the challenges and best practices in business valuation in divorce, as well as the determination of income for self-employed persons in a divorce scenario, contact us for a consultation.