In divorces, a business or professional practice owned by one party is subject to valuation and division. Business interests often dwarf all other assets on the table, and they represent future income, employment and meaningful engagement, often for both parties in the divorce. For all these reasons, it is vital to work with an attorney skilled in the complexities of proper valuation of the business.
At Christian D. Smed, P.A., we investigate and analyze the actual value of a business, in addition to the goodwill factors underlying the true value of the business. Our analysis is built on diligent discovery of all financial documents. We compile a picture of the business's or practice's value that includes:
Capitalization (financial resources plus equipment)
The combined value of deferred compensation and perks
Comparative values of similar businesses and practices
"Going concern" value
Expectation of future revenue growth
Once a value is established, we examine creative solutions to ensure an equitable property division. We are always mindful of the tax consequences of a possible transfer or sale of the business, when necessary. We strive at all times to protect the confidentiality of the business, its records and its customer base.