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The value of a family business or business interest is treated as an asset and therefore part of the matrimonial pot to be distributed when it comes to negotiating a financial settlement on divorce or in dissolution settlements. Since the business valuation may be the most significant component of the total matrimonial assets it needs to be ascertained with care normally with expert assistance in order to achieve a fair division of family wealth on divorce.
Business valuations are important for a number of reasons including the following:
Proper account needs to be taken of a number of aspects which can affect the valuation including whether both parties are involved whether the business owner is a sole trader a partner or a shareholder whether one or both parties own all or only a percentage of the shares whether the business owns property and whether the business is merely an income-producing vehicle. For instance a business which is just an income-producing vehicle reliant upon one or two individuals may have little value as a going concern.
Consideration needs to be...
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