Kentucky entrepreneurs who are going through the divorce process will have to address unique financial issues. The business that they solely own or co-own with a future ex-spouse may be their most valuable asset. Therefore, it’s important that they know exactly how much their business is worth.
If a spouse wants some percentage of ownership of the business in a divorce settlement, the entrepreneur will have to be aware of the current value of the business and its potential for growth. It will also be necessary to note all debts or liabilities the business has. For divorcing couples who are partners in a business, if one spouse wants to buy the other out, both will have to know how much of a payout should be provided.
The correct value of all business interests should be ascertained before divorce negotiations commence. This will help to ensure that the buyout is equitable in regards to how a sole proprietor will have to pay to a divorce settlement or what a spouse and co-owner of the shared business will receive in order to relinquish ownership interest.
To determine the most accurate value of a business, it will be necessary to obtain an independent appraisal. A forensic accountant may provide an unbiased assessment of the business by carefully examining business and personal records, making careful note of what the numbers show and what information may be missing.
A divorce attorney may assist clients in a high-asset divorce with obtaining favorable divorce settlement terms regarding property division. Legal counsel could help ensure that the rights and interests of clients are protected.