Experienced Business Valuation Attorneys Assessing Marital Assets in Wheaton, IL
Over the course of a marriage, it is common for spouses to work hard to create, maintain, and grow a business. Both parties have a share in the business's success or failure. When divorce becomes a reality, it is necessary to value the business in an attempt to properly divide it as an asset.
The DuPage County business valuation attorneys at Musielak & Rosinski LLC provide experienced counsel and representation for spouses going through high net worth divorces. We understand how important protecting your business is during asset division, and we will look closely at all relevant factors to help determine how much your business is worth, consulting with outside experts whenever necessary.
Experienced Wheaton Divorce Attorneys Working With Business Valuation Experts
Most often, a business valuation comes down to competing experts. Each party's attorney will work with his or her own trusted experts to accurately value the business and even recommend a potential division. We have extensive experience with all types of businesses, and we have great confidence in the skill of our experts. Our lawyers take several steps to ensure that the business valuation is accurate and complete, including:
- Depositions of business partners
- Analyzing bank records
- Comparing competing valuation experts
- Determining passive income
- Investigating tax documents
- Evaluating capital investments in the business
Whether your business is a family business or you simply act as a silent partner, it is important to work with a skilled attorney to ensure your rights and your investments are protected.
Valuing a Business Based on Income
The income approach values a business by looking at how much money it generates, both currently and in estimated future earnings. Financial professionals typically review profit and loss statements, tax returns, and other documentation to estimate a business's real earning potential, adjusting for factors such as owner compensation or one-time expenses that may affect the calculation.
This approach tends to work well for established businesses with a consistent earnings history, since it reflects the ongoing value the business is likely to produce for its owner. However, it can be less reliable for newer businesses or those with fluctuating income.
Valuing a Business Based on Recent Sales
The market approach compares a business to similar companies that have recently sold. This can give business owners a useful benchmark, particularly in industries where comparable sales data is readily available. Adjustments are often necessary to account for differences in size, location, growth potential, or the specific circumstances of each sale.
Finding truly comparable businesses can be difficult, especially for smaller or highly specialized companies. When reliable sales data exists, though, this approach can offer a valuable check against other valuation methods used in the case.
Valuing a Business Based on Assets and Liabilities
The asset-based approach calculates a business's worth by subtracting its debts and liabilities from the fair market value of its assets. This method accounts for equipment, inventory, property, and other tangible holdings, along with any outstanding debts or obligations. Intangible assets, such as goodwill or brand reputation, may also need to be considered depending on the nature of the business.
This approach is often used for businesses with substantial physical assets or those that are being liquidated rather than continued as an ongoing operation. In many divorce cases, more than one valuation method is used together to reach a fair and well-supported figure.
Contact Our Wheaton Business Valuation Attorneys
Protecting your business in a divorce involves careful record-keeping and meticulous attention to detail. To arrange a free consultation with Musielak & Rosinski LLC, call 630-344-6525 or contact our Wheaton, IL business valuation lawyers. With offices in DuPage County, we have experience helping clients throughout Illinois.