There are countless numbers of Colorado residents who have spent years building a business from the ground up. It can seem like a cruel twist of fate when the survival of that business is threatened by an impending divorce. One of the best means of protecting such a venture is ensuring that it is given a professional evaluation by a qualified accountant.
If a business owner is headed for a divorce, one of his or her first concerns is what will happen to their livelihood. A dissolution can mean the end of a profitable venture if one is forced to arrive at a settlement agreement that either over or undervalues such an enterprise. When these assets are part of a divorce, an experienced attorney will retain the services of a specially trained accountant. These individuals possess a thorough and extensive knowledge of all the factors that determine the true worth of a business.
If one party is not familiar with the operations of the business or with the financial records, then it is a distinct possibility that he or she may believe that the business is much more profitable in an effort to obtain a larger share of its worth. A professional analysis of the business in question will ensure that a court will not attempt to award a spouse more than he or she is entitled to receive. An accredited accountant will explain the evaluation of all the factors that make the business profitable or not.
The accountant will also understand how to evaluate factors in an effort to preserve the creditworthiness of an enterprise in order to ensure it has the potential to experience growth in its marketplace. Both the business owner and the former spouse may anticipate that the business will help pay for the costs associated with the divorce (which may include factors such as child support or alimony). It is imperative that an accurate and thorough valuation is completed and presented to the court. Colorado business owners who hope to retain their company may benefit from seeking advice from an attorney who is well-versed in the intricacies involved in protecting these types of assets during often contentious divorce proceedings.
Source: sbnonline.com, “Accountants can help family business owners protect assets after a divorce“, Jan. 2, 2018