Business Valuation Strategies in a Carlsbad Divorce

Pierre Domercq Professional Practice & Business Ownership

When a Carlsbad or North County divorce involves a closely-held business or substantial ownership in an S-Corporation or C-Corporation the case becomes much more legally complex. The business valuation strategies in a Carlsbad divorce and the experience of your attorney will make a substantial diference in the outcome.
The issue is the community’s interest in the spouse’s business ownership. If the spouse owned the company prior to the marriage (and no marital funds were used to support the business) it may be considered separate property. However, if the business was started or acquired during the course of the marriage it is considered a community asset and must be divided accordingly.
What business valuation strategies can be applied to a Carlsbad or North County divorce? Burke & Domercq works with expert witnesses to establish a valuation of the business interest in question. There are several techniques to establish a business valuation including but not limited to:
A multiple of annual gross sales
Offering the business for sale
It is important to make sure the divorce doesn’t impact the ongoing operations or profitability of the company in question. Offsetting the community interest may be done with cash, stocks or equities, retirement accounts, equity in the famly home or any other negotiated manner.
Both parties must consider the tax implications of the transaction. The experienced divorce attorneys at Burke & Domercq have decades of expertise with divorces involving business ownership and business valuation strategies.
If you are concerned about how a business interest will be handled in a North County divorce we invite you to contact us or call 760-712-3741 to schedule an appointment with one of our attorneys.