Valuing Professional Practices and Businesses
Determining the value of a business or professional practice during a dissolution is one of the most complex financial issues a couple can face. Unlike other assets, a business’s worth often goes beyond its tangible property because it also includes goodwill, reputation, and the professional skill of its owner.
At Stange Law Firm, we have the experience and resources to handle these challenging cases effectively. Our attorneys represent clients with complex and high-value assets, including closely held businesses, medical and dental practices, law firms, and other professional enterprises. We focus on ensuring an accurate valuation and protecting our clients’ financial interests during property division.
The Challenges of Business Valuation in Dissolution Matters
Valuing professional practices can be difficult because much of the value lies in the individual’s personal efforts rather than physical assets. Items such as office furniture, equipment, or accounts receivable rarely reflect the true worth of the practice. Instead, key factors like community goodwill, client relationships, reputation, and future earning potential often determine value.
Another challenge involves the owner’s level of control. Whether one spouse has a controlling or minority interest in the business can dramatically impact how the court treats that asset. In some cases, the value of a professional practice may depend on whether it can continue operating without the owner’s direct involvement.
How Stange Law Firm Approaches Business Valuation
When we take on a case involving a business or professional practice, our team conducts a thorough and methodical review of all relevant financial information. This can include:
- Tax returns, balance sheets, and profit-and-loss statements
- Client or patient lists, demographics, and earnings reports
- Equipment inventories and property records
- Partnership or shareholder agreements
We can work closely with forensic accountants, business valuation experts, and financial planners to develop an accurate picture of a company’s value. These professionals often rely on principles outlined in IRS Revenue Ruling 59-60, which provides the accepted framework for valuing closely held businesses. This ruling outlines the appropriate methods, such as income, market, and asset-based approaches, to ensure fairness and accuracy.
Our attorneys are skilled in presenting valuation evidence and expert testimony in court, helping clients achieve fair outcomes in property division and settlement negotiations. We combine financial precision with deep knowledge of family law statutes and case law to advocate for your best interests.
Protecting Your Interests in Complex Property Division
Professional practice often represents years, even decades, of dedication and personal investment. Whether you are the business owner or the spouse of one, having the right legal team on your side is essential. At Stange Law Firm, we understand how to balance the financial and emotional aspects of dividing a professional practice in dissolution matters.
Contact Our Multi-State Domestic Lawyers for Guidance
If you or your spouse owns a business or professional practice, ensuring a proper valuation is critical to achieving a fair property division. Contact Stange Law Firm online or call 855-805-0595 to schedule a confidential consultation at one of our convenient locations. Our attorneys can guide you every step of the way while safeguarding your financial future.
