If you or your spouse own a business, that business will most likely need to be valued for property division purposes in connection with your Minnesota divorce proceeding. Often, the value of this asset may eclipse the value of the remaining marital assets.
In Minnesota, the standard used for valuing a business is “fair market value” and there are at least eight (8) factors that the Court looks at when determining value:
- The nature of the business and the history of the enterprise from its inception.
- The economic outlook in general and the condition and outlook of the specific industry in particular.
- The value of the tangible assets as represented on the books of the company and financial condition of the business.
- The potential earnings capacity of the business and its ability to pay a fair return on an investment.
- The actual dividends or the ability of the business to pay dividends.
- The presence of goodwill and other intangible assets in the overall enterprise value.
- The size of the company or size of the block of stock or security being valued. Transactions or sales of similar securities, if available.
- Market data of similar businesses including actual sales and offerings. Relevant financial and sales data of securities in comparable publicly traded companies.
Because of the specialized knowledge required to analyze these factors, it is often advisable to retain a financial expert to value a business as part of a divorce proceeding in Minnesota.
If you have any questions about business valuations or how a business valuation may be helpful in your case, please call me today at 651-647-0087 or reach out via our online contact form to set up your free consultation.