Pittsburgh Business Valuations Lawyer
Pennsylvania is an equitable distribution state. That means that when a couple divorces, anything that qualifies as marital property will be divided among the spouses. Distribution may not be equal, but it must be equitable and fair. If you or your family has an ownership interest in a business, then that business may be considered part of the marital property subject to equitable distribution. Before you can decide how to handle the business in the divorce, you must establish the business’s actual value.
The Pittsburgh business valuation lawyers at Bunde & Roberts, P.C., have over 100 years of combined experience dealing with complicated and nuanced family law issues in Pennsylvania. We have spent years helping our clients work through the complex financial and familial issues that arise when a family-owned, closely-held, or other business becomes part of a Pennsylvania divorce proceeding. Our business valuation team will talk you through your options and represent your interests through the valuation and distribution processes. We take a results-oriented approach, focusing on the outcomes that matter to you most, whether that means preserving the business for continued existence or apportioning the business assets in a manner that ensures your financial interests are protected.
Protecting Your Valued Business Interests
If a business is deemed to be marital property, the parties must seek a valuation of the business from a professional business valuator. Like other marital property, only property acquired or value added during the marriage will be considered marital property; that means that the value of the business will be calculated from the date of marriage to the date of separation or date of distribution, as appropriate. The value of the business will be established based on a variety of factors consistent with standard valuation practices.
Business valuation is a complicated process that requires expert understanding. The business valuation attorneys at Bunde & Roberts have a network of expert witnesses ranging from forensic accountants to real estate experts to expert business valuators. We keep contacts with the most well-qualified experts who will ensure that your business is valued properly and fairly, ensuring a fair distribution of business assets and interests in the divorce.
Options for Valuation
Spouses in a divorce can choose a neutral business valuator together and agree to rely on that expert’s opinion with certain conditions. Alternatively, each spouse can retain their own expert in business valuation to ensure that their specific interests and viewpoints are reflected in their valuation.
There are three general approaches to business valuation that experts commonly use in family law matters: the asset-based approach, the income approach, and the market approach. The asset-based approach compares the business’s assets to the liabilities. The income approach focuses on the net present value of the cash flow that the business generates. The market approach looks to other companies in the same industry, region, and size and compares their apparent value. Each method involves utilizing specific techniques to adjust the valuation based on various factors, and each may be appropriate for different types of businesses and circumstances.
Often, a business owner in a divorce will want to use the accountant for the business or corporate attorney for the valuation. This is not advisable because a business valuation needs to be conducted by an independent neutral party to be valid and carry weight with the Court. Business valuation and property division attorneys at Bunde & Roberts, P.C. have relationships with many independent business valuators and make sure the valuation is done properly.
Expert Advice from a Knowledgeable Pittsburgh Business Valuation Lawyer
The Pennsylvania business valuation and property division attorneys at Bunde & Roberts, P.C., have over 100 years of combined service helping clients apportion property in family law matters. Whether your divorce involves a family business, closely-held corporation, or other business ownership interests, our business valuation team is here to help. Call the dedicated family law and divorce attorneys at the Pittsburgh office of Bunde & Roberts, P.C., today at 412-391-4330 for a consultation.