The Gray Divorce Podcast: Episode 48 Business Valuation in Divorce with Jennifer Allen CPA, ABV

Divorce is a complex and often emotionally charged process, and this complexity increases significantly when it involves individuals with substantial business interests, particularly in late-life divorces, where the financial stakes are often higher and the implications more profound. 

The division of marital assets, including business interests, requires a precise and fair valuation to ensure fair distribution. 

Today's podcast explores the critical role of business valuations in divorce. Our guest today, Jennifer Allen, is here to help us better understand this topic. 

Among the topics covered: 

• Why does business valuation matter in divorce? 
  • Accurate business valuation ensures that both parties receive a fair share of the marital assets. 
  • Proper valuation ensures that both parties can achieve financial security post-divorce. 
  • Business valuations can prevent protracted legal disputes 
• Typically, we see one party keeping the business and the other being bought out. Jenny shares how this might work. 
• Jenny discusses what she looks for in a business’s financials to possibly detect attempts to make the business seem less valuable. 
• Jenny discusses when she is brought in for a business valuation and if she is typically hired by both attorneys or by one side. 
• What happens if each party in the divorce brings in their own business valuation person and they have widely varying valuations? 
• Various methods of business valuation.  
  • Income approach 
  • Market approach 
  • Asset-based approach 

Resources

For more information about Jenny Allen’s business valuation services, visit www.anthemforensics.com