When a professional gets divorced, the value of his or her practice or business interest is usually included as a marital asset for the purposes of property distribution. This occurs when one or both spouses are owners of professional practices.
For example, individuals involved in the divorce may be:
The income generated from the practice is generally used to determine alimony and/or child support payments. Valuation experts may utilize widely varying standards to measure an asset's value.That is one reason you need an experienced attorney to make certain you are being treated fairly.
Most experts agree that a valuation of each individual professional practice depends on its particular facts and circumstances. The main aspects most valuation experts consider in reviewing business valuations in a divorce are:
- The business’s earning capacity
- The fair market value of the business’s fixed assets, such as land, buildings, and equipment
- The amount of the business’s accounts receivable (monies owed to the business)
- The business’s outstanding debts (monies owed for mortgages, loans etc.)
- The business’s goodwill, which includes the value of the business’s brand name, good customer relations, extensive customer base, and excellent employee relations
- The outlook of the industry in which the professional practice operates
If either you or your spouse is a doctor, dentist, lawyer, or other professional who owns his or her own professional practice, then you should choose me as your divorce attorney – Thomas C. Bradley – because I know the ins and outs of complicated marital estates. I also have an established network of financial experts and business specialists, which allows us to accurately assess your business.
I have the requisite experience to assist you. I've been providing divorce and other legal services to clients in the Reno area for more than 35 years. During that time, I've worked on a number of divorce cases involving the valuation of professional practices. While the division of assets in such cases is never easy, I not only have the necessary experience, but I also work with an experienced team of experts to accomplish the task properly.
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To learn more about the valuation of professional practices in Nevada divorce cases, contact my Reno law office to schedule a consultation.