Divorces are complicated, and when a family business is involved they become even more complex. Typically the business is income for the family and is considered property during divorce proceedings, especially if both spouses have ownership rights. Each spouse will want their share when the marriage ends. A business valuation may be done to determine the monetary value of the marital property, or in this case the company.
Business valuations should be done if the divorcing spouses cannot agree on a reasonable approach to sharing the business and an appraiser should be called in if one or the other spouse cannot agree on the value of the company. Connecticut courts follow the equitable distribution model to ensure fairness to both parties, and will label each asset owned by the couple. These labels include:
• Husband’s separate property
• Wife’s separate property
• Marital property
A valuation is a complex task that should be carried out by a professional and may include a team of attorneys, accountants, and financial professionals.