Running a business as a married couple may seem like an ideal choice during your relationship. However, when you divorce, the company and the assets that go with it may be up for debate. According to CNBC, a poll showed that about 98% of business owners do not know the value of their companies.
If you do not know your company’s value, you will not know how to divide your assets during the divorce. In some cases, couples choose to sell their company following a divorce. Other times, one may sell his or her share to the spouse.
How to determine the value of your company
Many business owners do not know how to find the value of their company correctly. Going through valuation experts who have credentials from the American Institute of Certified Public Accountants, the American Society of Appraisers or the National Association of Certified Valuators and Analysts can help ensure that you receive an accurate company valuation. The size of your company may determine the complexity of the valuation.
When to update the value of your business
If you had a valuation done years ago, you need to have another one as soon as possible. Sometimes, you may want to have a valuation done yearly. Your company can increase or decrease in value quickly. When it comes to a divorce, you do not wish to have the wrong information about your company’s worth. Instead, you should have an updated valuation.
No matter when you received the last value of your company, have another valuation for the sake of the case.