Quite often, the amount of revenue that is reported by small companies may not be indicative of the business' true economic values for divorce purposes. A business owner should take appropriate steps to make certain that business income is stated fairly. As an example, parties to divorce may consider having a joint review of the company books and records by a forensic accounting expert. A skillful San Diego family lawyer can assist you with formulating the appropriate steps that may be beneficial in your specific case.

Quite often, the amount of revenue that is reported by small companies may not be indicative of the business' true economic values for divorce purposes. A business owner should take appropriate steps to make certain that business income is stated fairly. As an example, parties to divorce may consider having a joint review of the company books and records by a forensic accounting expert. A skillful San Diego family lawyer can assist you with formulating the appropriate steps that may be beneficial in your specific case.

With respect to divorce, when it comes to valuing businesses, some jurisdictions have differing views on whether or not the valuation of a business should be based on its fair market value (the price at which the property would change hands between a willing buyer and willing seller) or its fair value (what it is worth to the owner). That said, the application of these conflicting standards can result in significant disparities in business value.

In most states, fair value is the statutory standard of value applicable in cases of dissenting stockholders' valuation rights. In these states, if a corporation merges, sells out, or takes certain other major actions, and the owner of a minority interest believes that he is being forced to receive less than adequate consideration for his stock, he has the right to have his shares appraised and to receive fair value in cash.

Fair value may also relate to value in divorce. Many states have specific definitions of fair value with regard to marital dissolution.

Strategic/Investment Value

Investment value is the value to a particular investor based on individual investment requirements and expectations. The notion of fair value is greatly dependent on circumstance and can be extremely subjective. The standards of value that may be applied in a divorce can vary, not only from county to county within a state, but even from judge to judge. Thus, if you believe that you would benefit from the skills of a well-informed San Diego family lawyer with regard to the facts of your particular case, please call Lisa Zonder for an initial consultation.