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Jeffrey D. Jones
Ask the Expert: Business Valuator
Jeffrey D. Jones,
ASA, CBA, FCBI
Please send your questions to
Jeffrey Jones Because of the large volume of mail and the sensitivity or specific nature of some issues, it is impossible to post answers to all of your questions in this column. As time permits, and if you so indicate, I will try to send a few personalized responses. DivorceInteractive.com has a strict
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Q:
I am getting a divorce and my husband owns a
business. My attorney says I need to get an appraisal of the business, but my
husband says the business has no value, because he is the business and when he
leaves there would be no business. Is he correct?
A: The business is considered an
asset of your estate. The Court will require that you submit a list of all the
assets owned by you and your husband, including the business. When the parties
cannot agree as to the value of the business, the Court will require an
appraisal be done. The options you have are to either get your own appraiser,
jointly agree to hire an independent appraiser (do not use the CPA who does the
accounting for the business or anyone who has an ongoing relationship with
either you or your husband), or the Court will hire an appraiser, and you and
your husband will have to pay the cost.The
standard of value in most all divorce cases is Fair Market Value. That is “that
price at which a willing seller and willing generic buyer would agree, neither
being under compulsion to sell or buy.” So, based on this concept the business
may well have a significant value. Its value will be added to the other assets
of the estate wherein the Court will make a division of property.
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