Accounting For Business Assets In A Marietta Divorce

Last updated on May 5, 2026

A closely held business often represents a key asset – and source of friction – in divorce. A satisfactory solution that protects your interests requires accurate valuation and sound negotiating strategy.

The Marietta business asset lawyers of Hill Macdonald, LLC, can knowledgeably address the complex issue of businesses as marital property.

• We represent business owners and business partners who want to protect their financial stake and shield the commercial entity.
• We counsel nonowner spouses who are entitled to equity considerations in a spouse’s business.
• If you and your spouse have built a business together, we can work through the various options for moving forward.

Our attorneys are well-versed in Marietta family law, with backgrounds in business and accounting. We have long experience with business valuations and buyouts in the context of divorce.

The Different Methods of Business Valuation

At the end of a long-term marriage, couples will likely have to work through the division of numerous complex assets and debts. From homes and vehicles to retirement plans and bank accounts, it is not uncommon for couples to amass several assets and liabilities. One that typically requires a lengthy process to reach a compromise is the division of a family business.

Part of the difficulty in reaching a compromise regarding business division lies in the first step of the process itself – determining the value of the business. Generally, there are five agreed-upon methods of business valuation.

• Many people consider asset valuation to be the primary method. By examining both the intangible and tangible assets owned by the business, a value can be reached. These assets can include on-hand cash, property, equipment and inventory. Additionally, the value of any patents or trademarks can be used to reach a conclusion.
• Another strategy focuses on historical earnings and the repayment of debt. By researching the company’s cash flow and income-to-debt ratio from a historical perspective, experts can arrive at a proper business valuation.
• The relative valuation method will look at similar organizations. How much would these organizations sell for? By understanding the value of comparative businesses, you can understand the value of your own business.
• Carefully examining the business’s future profitability, it is possible to arrive at a valuation based on future maintainable earnings. By using sales figures, expenses and profits, it might be possible to predict future value.
• Looking at the organization’s future earnings can also be used in the discount cash flow valuation Here, the financial experts will examine potential future cash flow and then discount it to present-day values.

Whether using one method or a combination of several, a divorcing couple can make the decision to sell the business or have one spouse buy the other out. You should ask these questions as soon as possible in the divorce process to ensure you arrive at the best compromise possible.

Business Valuations And Creative Solutions

We can recommend business valuation specialists who will determine what the business is worth. Ideally, you can agree to abide by one appraisal. Hiring competing experts increases the expense and requires litigation to decide upon a dollar figure.

The next question is the proportion of spousal equity. If the business was owned prior to marriage, only the increase in value may be considered marital property. If the business was formed during the marriage, the spouse may be fully vested. This is an oversimplification of complex legal issues that may end up in court.

Lastly is the matter of what to do with the business. Is there a buy-sell provision triggered by divorce? Will the business assets be liquidated and divided? If the business will continue, the spouse must be compensated accordingly through alimony, cash settlement, the house or other marital assets, or some combination thereof. We can help engineer a settlement that best protects your business interests and goals for divorce.