When a business owner and their spouse decide to divorce, dividing their jointly held assets can be far more complex than in other cases. Unlike standard divorces, where the court examines each spouse’s income and assets, a business often represents a significant portion of the marital estate, and its value must be carefully assessed. Business owners may not take a traditional salary, making the business itself a key financial asset. Accurate business valuations are essential in Toronto divorces to ensure a fair division of assets.
Navigating these challenges requires a clear understanding of your business’s worth and how to protect it during the divorce process. The experienced legal team at The Riley Divorce & Family Law Firm could guide you through the complexities of valuing your business, ensuring your interests are well-represented during this critical time. Reach out today for guidance from a dedicated property division lawyer.
A business valuation determines a company’s worth. When assessing the value of a particular business, an accountant, lawyer, or court looks at the company’s tangible assets, such as cash, machinery or other equipment, and inventory. People also look at intangible assets, including goodwill, intellectual property rights, and brand name. A company’s debts would also be considered in obtaining its full value.
Understanding the full present value of a Toronto business at the time of a divorce can help each spouse better understand their own interests. A seasoned local lawyer has the particular knowledge and skills to understand forensic accounts and business financing.
If a small business owner pursues a divorce from their spouse, the value of their company can become important in a Toronto divorce. If one of the spouses started, bought, or built up the value of the business during the marriage, the business might be part of the couple’s marital property, even if only one spouse participated in the management or acquisition of the business. As marital property, a Toronto court could determine that the business should be equitably divided between the two spouses in a divorce.
A couple might have to make financial sacrifices for the business’s good during a marriage. If the couple later decides to divorce, the spouse of the person who started or acquired the business might be able to obtain an interest in the company or a monetary settlement that represents their share of the company’s value.
A knowledgeable local lawyer could help advocate for your interests in a business after a divorce.
Business valuations following a Toronto divorce are critical. When a person owns an interest in a business, it is important to know how much the company is worth because the value of the business can become a part of the couple’s marital assets.
Contact The Riley Divorce & Family Law Firm who understands complicated issues of business valuation and knows how to advocate on your behalf for the best possible resolution of your divorce. Our legal team could fight to help protect your small business and ensure it receives no major negative effect from your divorce.
Now you can have your Consultation with Paul Riley any time from the comfort of your own home. With video calls from Zoom, your Team at The Riley Divorce & Family Law Firm can meet with you virtually, and learn about your case. All you need is a smartphone, tablet, laptop, or desktop with a built-in camera and microphone.
Paul Riley Law Office
