We Can Help. Call Today!
The Valuation Of Business Ownership Or A Professional Practice In A Columbus Divorce

The Valuation of Business Ownership or a Professional Practice in a Columbus Divorce

The valuation of business ownership or professional practice in a Columbus area divorce is a critical process requiring extensive expertise and experience. After  37 years of practice in litigation and more than 20 years of practice in Ohio family law, and involvement in divorces with issues of business ownership, physician practices, attorney practices, and substantial assets I can tell you that accurate valuation is the key to these cases.

There are several acceptable methods for establishing the value of the “marital interest” in a business, or professional practice. The “appraised value” of a business or practice establishes how much a business or practice would generate if it were sold outright.  In some cases, an “earnings multiplier” is applied to calculate the value of an entity based upon the business or income it generates.  It is important to carefully analyze not only the reported income of the entity itself, but use realistic formulas as well.  It is too easy to over-inflate or under-estimate the value of an entity in this process without careful examination of all factors and the underlying associated data.

Another factor that can influence the valuation of a business or professional practice in a Columbus divorce is “Goodwill.” “Goodwill” is the financial value of the spouse’s skill, relationships, reputation and hard work upon the value of the business itself.  This can be a critical value, as the differential between “enterprise” goodwill and “personal” goodwill with regard to the specific assets of the company or practice can have a profound impact on the value of a business or professional practice.

Once the parties arrive at the “valuation” of the spouse’s interest in the business or professional practice, we must determine how to offset the “marital interest” in that asset to the other spouse. Those that own a business or who are part of a professional practice do not usually want to see the forced sale (or allocation of ownership to the other spouse) of their entity in order to provide the value necessary to offset the marital interest.  There are often other alternatives such as the transfer of other assets, an increased share of the equity of the family home, non-voting stock in the business or even monthly payments.

If you are interested in protecting the valuation of business ownership or professional practice in a divorce, or if your spouse owns an interest in a closely-held family business or participates in a professional practice we invite you to call us at (614) 289-1227. We will work to ensure that an accurate and fair valuation is established, and that our client’s interests are protected.

Categories

Reviews From Our Clients

  • “I would recommend this attorney to anyone in my family or friends. He is the best. Before I worked with Mr. Geary with a very complicated and contested divorce case, I had also worked with other ...”

    - Wentong
  • “Bill was very attentive and listened carefully to my case. He "rolled up his sleeves", went to work and got the best possible solution to my problem. He was absolutely brilliant, and his fee was very ...”

    - Carl
  • “Mr. Geary is a very knowledgeable and trustworthy lawyer, which is not always synonymous with such a profession. I'm always impressed with his attentiveness and responsiveness, even after normal ...”

    - Gregory
  • “Attorney Geary helped me through some tough marital issues. He is knowledgeable and very capable. I continue to recommend him to individuals who need representation on domestic issues.”

    - Bill
  • “Attorney William Geary, is an excellent Attorney. What he did for my family involving a child abuse case was outstanding. I would recommend William Geary one hundred present. Very good is not the ...”

    - Donna
/

Contact Our Firm

  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.

Case Examples

  • Child Support Enforcement Agency’s Payment of Attorney Fees to Our Client
  • Custody to Father (Child Relocated from Japan)
  • Custody to Unrelated Couple
  • Divorce/Business Valuation
  • Retrieval of Children Who Had Been Taken from State and Hidden from Father
/