Valuing Professional Practices and Businesses

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Valuing Professional Practices and Businesses

Valuing a professional practice in a divorce can be extremely difficult. However, at Stange Law Firm, PC, we have the resources to do it effectively and efficiently. Our hard work helps our clients gain an accurate picture of the value of a business. It also helps them determine the right strategy for property division and for moving forward after a divorce.Located throughout Missouri, Illinois, Kansas and Oklahoma, our lawyers represent spouses with complex and sophisticated assets in divorce proceedings. We focus exclusively on family law and use in-depth knowledge of statutes and case law to achieve the best possible results.

Challenges to Professional Practice Valuation

One of the reasons valuation of a professional practice can be so challenging is that much of the value is in the individual’s contribution, not in merchandise or interests that can be easily divided. Office furniture, outdated computer equipment, business libraries and accounts receivable seldom add up to the true value of the practice — the value brought by community goodwill developed from the intellectual and physical endeavors of the business owner.

When we handle a business valuation, we conduct extensive discovery. The business owner must often provide an extensive list of financial information. The owner must provide tax information, financial statements, balance sheets and reports. For professional practices, business owners must also produce counts of previous, existing and expected patients, practice demographics reports and equipment lists.

Whether or not the business owner has a controlling interest is also a significant issue, potentially changing the value of a business from nothing to a significant amount.

Business valuation experts may also be called upon to lend their opinions and to help make an accurate analysis. Stange Law Firm, PC, has the resources to handle even the most complex family law disputes. In complicated matters, we often work with experienced professionals, like accountants and financial planners, to help our clients achieve the best possible results in family law proceedings.  For more information on this topic, you can also read an article by Kirk C. Stange titled: Business Valuation Basics in Divorce.

Accountants and financial experts use IRS Revenue Ruling 59-60 to value closely held corporations or the stock of corporations where market quotations are not available. This ruling outlines the general approaches, methods and factors to be considered in valuing professional practices and businesses.

Contact Us for Help Valuing Your Professional Practice or Business in Missouri, Illinois, Kansas or Oklahoma

You can read more information on this topic in an article titled: Valuing a business: the role of an experienced attorney.

To learn more about our approach to high-asset property division, contact us online or by phone to schedule a confidential consultation at any of our convenient locations. We have locations in St. Louis, Kansas City, Columbia, Springfield, Wichita, Tulsa and beyond in the Midwest.

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Helpful Information Regarding High Net Worth Divorce From our Webpage

To learn more about our work in the area of high net worth divorce, please follow the links below:
Can I afford to get a divorce with a large sum of assets
We frequently hear this question from people who believe that they have too much to lose to divorce. They stay in marriages in which they are unhappy — sometimes for years — when they believe they cannot afford to get a divorce.
Hidden assets
Divorces — especially those involving division of closely held small to mid-sized businesses — can sometimes involve hidden assets. When this happens, we have the resources and connections necessary to locate them for proper division.
Valuing professional practices and businesses
Valuing a professional practice can be extremely difficult because much of the value is in the individual's contribution, not in merchandise or interests that can be easily divided. If you have questions, we have answers.
Pensions, IRAs and 401(k)s
Missouri law significantly affects the division of retirement savings accounts. If many of your assets are in IRAs or 401(k)s, we can talk with you about your options.
Qualified Domestic Relations Orders
QDROs create or recognize the existence of an alternate payee's right to receive all or a portion of the benefits payable under a retirement plan. We can explain what this means for you.
Divorce Tax Issues
For some, they can have significant questions and concerns about how getting divorced might effect them from a tax perspective. We can help ensure that clients can get the tax advice they need from tax professionals.
Maintaining Lifestyle
Many individuals have spent their entire life working hard in order to maintain a lifestyle that they have sought out. We can help individuals going through divorce ensure that they are put in the best financial position possible after a divorce.
Business Owners
Many individuals have spent their whole life trying to create a successful business or they have assisted their spouse build up this interest. It can be stressful when that business interest becomes part of a divorce proceeding. However, we an help ensure that a business interests are fairly evaluated.
Prenuptial & Postnuptial Agreements
Prior to entering into a marriage, or after the wedding date, many individuals are interested in putting together a prenuptial or postnuptial agreement to ensure that there are not lengthy and contentious divorce proceedings later if the marriage ends in divorce In these instances, we can help.
Farm Divorce
In certain cases, parties going through a divorce may own a family farm. This can result in the farm itself, equipment, livestock and other valuable assets being put in play in a divorce. We can help you if this is the case.
Stocks and Bonds
Many married couples also have significant sums in stocks and bonds. It's vital to work with an attorney to have an accounting of what is out there and to ensure it is properly addressed in family court.
Vocational Examination
The income producing potential of a husband and wife can be an important issue in a spousal support or child support case. A vocational examination can be useful in many of these cases where the current income of a party does not appropriately reflect what they could make.
Real Estate Portfolios
Real estate can be an important issue in divorce cases where the parties own rental property and other valuable real estate. We can work with parties in these types of cases to make sure these assets are property valuated and apportioned.
Delayed Compensation
In some situations, a party may be compensated through delayed compensation. This is an important area that should not be over-looked in a divorce.
Overseas Assets
Overseas assets can be significant issue in certain cases. It is vital that you have an attorney who understands how to address this issue
Serving the St. Louis Metropolitan Area, Kansas City, Columbia, Springfield, Wichita, Topeka, Tulsa and Beyond in Missouri, Illinois, Kansas and Oklahoma

From our webpage, you can also read articles about family law, view informational videos, seminar videos, listen to our podcast, download our mobile application or view support calculators for MissouriIllinois and Kansas.

If you are looking to find and hire a child custody lawyer, contact us online or by phone to schedule a consultation at any of our convenient locations.

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St. Louis (Clayton), Missouri 63105

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