Answers To Questions About Maryland Business Valuation

Getting an accurate business valuation in the Rockville area is the most crucial step in a divorce that involves a business. Attorney Jeff Greenblatt has more than 45 years of experience working with clients whose marriage involved a small business, family business, online business or other entity. Call 240-406-7311 to speak to Jeff about your specific concerns.

How do you get an accurate business valuation?

Assets and liabilities must be assessed. This is done by gathering all of the earnings and financial records of the business. The value of inventory, equipment, real property, brand and other parts of the business need to be assessed and adjusted for today’s economy. This means that if the equipment is 10 years old, it likely has less value now than when it was purchased. The land value can also change. If a business was purchased 20 years ago on land that was cheap but is now in a desirable location due to infrastructure improvements, then this needs to be taken into consideration. Comparisons to similar businesses are always helpful if similar businesses in the same general geography can be found. Business valuation in Maryland is overseen by an attorney and almost always done by enlisting the help of financial experts.

How does a prenup affect how a business is divided?

A well-drafted prenuptial agreement that includes an interest waiver can be an effective way to communicate what happens to a business should a couple divorce. The prenup should include details as to which part – if any – of the business is marital, and which is separate. The prenup should clearly state what is to happen should the business appreciate during the marriage and who is eligible for the retirement benefits.

Who owns the business if one spouse started and ran the business and the other spouse stayed home and raised the kids?

Most businesses that are run by one spouse while the other spouse works to make it possible for the couple to have the business and a family are considered marital. Unless there is a prenuptial agreement or the business is a partnership or has shareholders, it is likely that both spouses will have an equal interest in the business as a marital asset.

What happens in a divorce where one spouse is part of a business partnership?

This will depend on how the partnership agreement is worded. A limited company (such as an LLC) should include language that defines the method of valuation. Shareholders will need to meet and agree as to what actions should be taken should one shareholder get divorced. A divorce attorney who is experienced in many types of business valuation will be able to advise you further on this.

Get Answers To Your Specific Business Valuation Questions

Attorney Jeff Greenblatt has helped hundreds of divorce clients understand their rights when it comes to the division of assets and businesses. Call 240-406-7311 to speak with Jeff about your situation. You can also email Jeff at Jeffrey N. Greenblatt of Joseph, Greenwald & Laake, PA, and he will get in touch with you.