Before divorce, obtaining an accurate valuation of your assets is necessary to make sure you choose the right settlement. If you own a business, it’s particularly important to obtain a fair valuation. For example, you may choose to have a fair market value or to use the business’s book value. It’s a choice you and your spouse should make when hiring someone to evaluate your property.
Remember that there are many different things that need a clear value. For instance, the office space, furniture, computer equipment and even office supplies count in the value of your business property. Any land you own should be valued at its historical cost. If you have an inventory, you need to record the value at its purchase price, not at the price at which you intend to sell. In some cases, it’s possible to have the inventory’s value lowered, like if it’s damaged or obsolete.
Other things to look for when you are adding values to your assets are investment securities and other digital assets. For instance, you may have stocks or securities for trade. Additionally, digital assets like a website, software and other items need to be calculated in the total value of your business.
When it comes to divorce, it’s up to you if you want to divide a business, manage it with your spouse, run it yourself or leave it in the possession of your spouse. If you determine that you’ll sell the business, the value you come up with is vital to the sale. If you intend to allow your spouse to keep the business, it becomes a pawn in negotiations.
You both have the right to separate valuations, but choosing a single party to value your property may be helpful. If not, choose an averaged value, so you know how much your business is worth.