What is divorce valuation?

In a divorce case, a business valuation not only considers the historical financial information of the company, but it also looks at the projected future revenues and expenses of the company to determine a fair market value. For example, before the recession of 2008 and 2009, many households were doing well.

How is the value of a business determined during divorce?

Determining The Value Of A Business During Divorce. When dividing marital assets, courts have broad discretion to assign a value to the asset and determine how to divide that value among the parties. Because of this discretion, it is very important to assign an accurate value to each marital asset.

How is property valuation is determined for divorce?

During a divorce settlement, if the couple can’t agree on how to divide the marital property, then the property may need to be professionally valued so that it can be divided fairly. This valuation includes all marital property – personal property, homes, and businesses – and can be complicated.

How are marital assets divided in a divorce?

When dividing marital assets, courts have broad discretion to assign a value to the asset and determine how to divide that value among the parties. Because of this discretion, it is very important to assign an accurate value to each marital asset.

When to calculate the value of a pension for divorce?

This usually occurs when benefits are actually being paid by the plan. It is not necessary to determine the value of the pension benefit at the time of the divorce, as long as the provision for deferred distribution is explicitly stated in the QDRO.

How are business valuations used in divorce cases?

Business valuations in divorce cases are almost unavoidable in California when one or both spouses are business owners. The common perception is business valuations in divorces get unnecessarily expensive. That is true if the spouses or their lawyers allow it to go on too long. Does it have to be that way? Can this process be efficient?

How are income and expenses determined in divorce?

First, the court must determine the income and expenses of the parties; second, it must determine the needs of the obligee; and finally, based on the ability of the obligor to pay and the needs of the obligee, it must enter an appropriate order for support.

How are assets divided in a divorce settlement?

Their marriage is a medium-term marriage where spousal support and an unequal division of marital property may be considered. Divorce Settlement: The marital assets are split 60/40 in Karen’s favor. There is no spousal support or child support. Joseph and Karen both have high-paying careers.