Divorcing with a Family Business: Key Considerations for Preserving Your Wealth
When a family business is involved in the divorce process, the stakes can get very high. Whether it’s a small local business or a larger enterprise, deciding how to handle this shared asset is critical to ensuring the future stability of both the business and the divorcing spouses. In this post, we’ll cover the essential steps you need to take when navigating a divorce with a family business. Step 1: Valuing the Business The first, and perhaps most crucial, step is determining the value of the business. This typically requires hiring a professional business appraiser. The appraiser will consider factors such as the business’s income, assets, liabilities, and its future growth potential. This valuation will play a significant role in how the business is divided between spouses. Factors that influence business value include: • Annual revenue and profitability • Business debts and liabilities • Market trends and competition • The potential for future growth Having an accur...