Business Valuation

Your mediator will help you determine the best way to value the business. If your spouse owns a large business with significant profits, you will want a CPA or other financial adviser who is experienced in valuing similar businesses to make the valuation. If the two of you can agree on the expert, it will be less costly than if you each hire your own.

If this is a small business, you may want to attempt your own evaluation. Look at income and expenses, assets and debts. What is the average gross income? Are there any long-term contracts for services the company is to provide? What are the expenses (lease payments, loan payments, salaries, taxes, utilities)? What are the assets (such as current value of equipment, accounts payable)? What are the debts (loans, unpaid taxes, unpaid in valuing the business, look at the retirement plans)?

Bank statements and tax returns will provide you with some of the information you will need. Sometimes profit and loss statements, loan applications, or buy/sell agreements may assist you in determining value. The more financial information you have, the easier it will be to determine an actual value.