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What You Need to Know About Valuing Your Business in a Divorce

Oct 19, 2018

Whether a couple’s divorce has been amicable or contentious, it can still be a challenge to divide assets (and liabilities) between the two parties. The court must classify assets as either marital or nonmarital, place a value on them and then distribute them between the spouses. The challenge comes in both classifying assets and correctly valuing them.

If you are a business owner and are going through a divorce, this is what you need to know about valuing your company.

Marital vs. Nonmarital Assets

Assets acquired during a marriage, using joint funds, are considered marital assets. Those acquired before the marriage and acquired with separate funds are considered nonmarital assets. This means your business may be classified as either one depending on when