People who secure professional degrees and who establish themselves in competitive industries may become their own employers. They start their own professional practices where they offer accounting services or chiropractic adjustments.
A professional practice could expand to include other employees or may rely almost exclusively on the hard work and services of the professional who started the company. The professional may hire their spouse or other family members as support staff in some cases.
When a professional divorces, they may worry about the possible loss of their company or the financial strain caused by buying out a spouse. Typically, valuing a professional practice is an important part of the divorce process under such circumstances.
Business valuation is a complex process
Contrary to what many people believe, there isn’t one simple formula for determining what a business is worth. Instead, there are numerous different valuation methods that can work in a variety of circumstances.
The type of business, the structure of the company and even the value of major company assets, as well as their age, can influence what the company is truly worth. Successful professionals and their spouses may disagree about valuation methods and the value set for a company, which can make the property division process more challenging to navigate.
People addressing marital estates that contain high-value resources, such as professional practices, often need help with financial reviews, asset valuation and property division negotiations. Working with an attorney who has experience handling high-asset divorces can be beneficial for successful professionals and their spouses if they do not already agree of the value of a business or practice.