Getting divorced can be financially challenging for any couple in New York. However, divorce can be particularly confusing for spouses where one or both own a business. The value of the business as well as the business’s cash flow that can be spent are a couple of the most frequently fought about matters during such a divorce.
The spouses may have different ideas about how much the company is worth as well as the quantity of money it generates. In many cases, the spouse who does not operate the business does not know much about the business finances. However, he or she believes that the company is highly valuable and profitable.
Because the business’s value can be a major point of conflict, enlisting the help of a valuation analyst may be expedient during divorce. A person holding this type of designation must complete special training, meet certain experience requirements and pass tests. A qualified Certified Public Accountant who holds the designation can calculate a value for the business, document it and explain why this value is fair.
The financial aspect of a divorce, especially a high-value divorce, can be just as challenging to cope with as the emotional aspect of it. However, two spouses who wish to end their marriage may make the process easier if they are willing to reach a mutually satisfactory agreement through negotiation, which may require help from the appropriate third parties. This is less stressful than going to trial, where a judge in New York will end up making the final decisions regarding how their assets will be split.
Source: sbnonline.com, “Accountants can help family business owners protect assets after a divorce“, Jan. 2, 2018