In Washington state, property that spouses acquire during the marriage is generally considered community property and divided equally in a divorce. If one or both spouses owns a small business or closely held company, fairly including it in the division of marital property requires a business valuation.
Spouses often disagree over the value of a business. Determining the fair value usually involves hiring a business appraiser to review the books, examine the operations, and provide an expert opinion to the court.
One common method for valuing businesses in divorce cases is the “income” approach, where an appraiser calculates the present value of the income the business is expected to generate in the future. It’s vital to retain a business appraiser who understands how a business’s value can fluctuate based on industry, market conditions, and geographic location.
Courts in Washington use various formulas and calculations to divide the value of a business in divorce cases equitably. The Harbor Family Law team will help you understand the process and advocate for your position. We work with skilled business valuation professionals and have many years of experience representing clients throughout the Greater Puget Sound Area, including Pierce, Kitsap, & South King counties.
Contact us to schedule a consultation.