If a party owes or co-owns a family business, there can be very unique challenges to deal with in a divorce case. A Pennsylvania Court is authorized to divide the value of a business in a divorce case. Therefore it is important to carefully consider whether you will acquire a business valuation to determine the value of the business and the income that the business produces.
Business valuations can be very expensive and they are not acquired in every divorce case where a business exists. The decision to obtain a business valuation should be made after careful consideration and consultation with your divorce attorney. There are several well qualified business appraisers available who have experience valuing business and testifying in Court. You should talk to your divorce attorney before hiring a business valuator so that your attorney can help you reached an informed decision when hiring an expert. Sometimes a business valuator can preliminarily review basic information and provide an opinion as to whether it is worthwhile to acquire a business valuation.
You will also need to gather some basic information for the business valuator to review. Here is a list of important financial documents that may be reviewed by the business valuator:
- Tax returns for the past five (5) years with all schedules;
- Profit and loss statements;
- Income statements;
- Balance sheets;
- Computer generated financial records;
- Banking records for the last five (5) years;
Your divorce attorney and / or business valuator may request other financial information depending on the type of business you have.