Going through a divorce in Minnesota is difficult enough, but add a business to the mix, and you may struggle significantly with everyone on your plate. One of the things that will be required is having the business officially valued. This is needed if your business is considered marital property. Understandably, this can be a daunting experience to go through as a number of steps need to be taken to find the correct dollar amount. The following includes information you need to know about obtaining the accurate value of your business.
Finding legal help
The very first step in obtaining a proper valuation of your company is to find a qualified attorney to take on your case. An attorney who is experienced in the field of business valuation may help you get an estimate that’s as accurate as possible. They should also have certain credentials to their name, such as being a certified business appraiser or accredited senior appraiser.
Start gathering these documents
Divorce doesn’t come out of nowhere; it is likely that you’ve been noticing the downturn of your marriage. Thus, it is important to take proactive measures before you consult a divorce lawyer. This includes actions such as gathering the right documents that can help you prove your company’s value. The following documents are an absolute must to obtain:
- Balance sheets
- State and federal tax returns
- Financial statements
Options on hand to determine value
If you’re looking for a quick valuation of your company, then the asset-based approach may be your best bet. This approach involves adding up all your assets and subtracting them from your liabilities, thus presenting you with a good estimate of the value of your company. The other option you have includes going off the market value. This means what your business would be worth depends on how much similar businesses in the area sold for. The only issue here is that potential is thrown out of the equation, so you may be reducing your own value.
The valuation of a business can be a complex thing to take on. All this begins by looking for an attorney to help you. Then, you can begin the process to move forward in the right direction.