Divorce is a powerful reminder that a marriage is as much an economic relationship as it is a personal one. If you are facing the difficulties of a divorce, and a business was part of the family balance sheet, you will need to determine the value of that business, whether for trial or for settlement discussions.
Your business valuation expert should work closely with your legal counsel to determine, and argue for, the appropriate value of the business. When both parties are negotiating in good faith, a credible appraisal can greatly shorten the process. If the matter goes to trial, your financial expert will have as much impact on the outcome as your attorney will.
Your business valuation expert should have three key characteristics to secure your best outcome.
- Experience: Since disputes present a wide variety of shifting challenges, experience is key to ensure that they are met correctly.
- Communication: The practice of business valuation is complex. Given the high stakes involved, it is important that you and your legal counsel understand not just the value result, but how it was achieved. Effective communication by your business valuation expert to your spouse’s counsel (and his or her expert) can also lead to an early settlement.
- Credibility: Ultimately, your business valuation expert might be required to present and argue a case for value, whether to your spouse or to a jury. The credibility that comes from experience, training, rigor, and skepticism is central to persuading a trier of fact, a mediator, or a jury of the merits of your case.
In a divorce matter, clients rely on Arpeggio Advisors for their experience, clear communication, and commitment to producing credible analyses and conclusions.
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