Monday, June 20, 2011

Before the Divorce

No one that I know plans in advance getting a divorce, and yet we all know that approximately 50% of all marriages end up in a divorce. The statistics are even worse for second marriages!

From my considerable experience in both consulting and conducting business valuations, about the worst time in your life will be when you and your spouse start talking about separating and getting a divorce.

The only worse thing will be when you realize that a judge may force you to sell your business or at the very least buy-out the interests of your spouse to avoid that sale.

Suddenly, you find yourself wishing that you and your spouse had settled on some type of approach or formula very early on in your marriage.... NOT of course, one spouse or partner thinks the business is worth $1.5 million while the other person (the likely buyer) thinks or hopes it is worth 1/3rd that amount!

Every couple, every partnership needs to agree far in advance as to what methods they will use to value their business, and they need to establish at least a base-line value as a starting point.

Based upon some recent experiences as an expert witness, I can't begin to tell you the tens of thousands of $$$ that you will save yourself as a result of following this advice.

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