Financially Complex Divorces – Miles Mason, divorce lawyer attorney of Nashville, Memphis, Murfreesboro, and Franklin, discusses business valuation and complex financial cases.

Business Valuations and Complex Financial Problems in Divorce

The valuation of a publicly traded corporation is relatively simple. The valuation of a closely held company can be extremely complex. Likely an expert will be required to offer evidence of its value. The exact process depends on the type of business. For professional practices, specific valuation techniques are used and good will is generally not considered.

In situations where the valuation of a business is the most substantial asset in the divorce, great care must be taken. Opposing business valuation experts may value the same closely-held business quite differently. Often, differences can be several million dollars. The family law attorney must have a depth of understanding with regards to valuation methods, accounting, and finance. All methods used to value a business are replete with subjective value judgments. The divorce attorney must be able to understand the subtle, but common errors, which can occur with each valuation method to prevent prejudice to the client's case.

In many circumstances, the debt of a business entity can become more important than the intrinsic value of the business. If one spouse owns a business and has pledged personal (i.e. marital) assets as security for debt, the other spouse should be careful to determine the total amount of debt and protect against being held liable for those debts. These important issues must be addressed in the M.D.A.

Miles Mason, Sr. is a former CPA and teaches seminars across Tennessee and the nation for other lawyers, business valuation experts, and CPA's to prepare them for the complexities of handling divorces with business valuation issues. Mason has worked with some of the very best business valuation experts in the nation.