A natural procedure during a divorce entails dividing the many assets and liabilities equally between the parties (classified as equitable distribution). The court will typically categorize the property as either separate or marital. A value will be placed on the property after which it will be distributed among the spouses. You can find here the the best DUI Attorney.
The value utilized is usually the fair market value from the date of separation. It is easy to establish the fair market value for certain possessions, however, for others, it is not so straightforward. For instance, a bank account is not a complicated item to value because all that needs to be done is checking the bank balance as from the date of separation. A marital residence is also moderately easy to value, since an appraisal can be ordered, or the partners can agree to the tax value of the property being used. However, items such as a qualified pension plan or frequent flier miles may prove to be trickier. A business interest for example, is among one of the more complicated assets to value.
Marital Vs Separate
There are factors that will regulate whether a business is viewed as marital or separate. Say the business interest was bought with joint funds during the marriage, then it will be classified as marital property and the value be split equally between the spouses. On the other hand, if the business was acquired with separate funds or was owned before the date of marriage, then it is viewed as separate property. In complicated cases, it may be useful to hire a Gig Harbor Divorce Attorney to help you with determining whether the business is marital or separate. First the purchase date of the business and the date of marriage will be looked at. Secondly, the source of the funds utilized for starting the business will be scrutinized, and finally, the labor-related and financial contributions to the company provided by either spouse throughout the marriage. The initial step of assessing whether the business is a marital or separate property can be complex, but that is not where it stops. The entire process of an interest valuation can be problematical. When the unfortunate prospect of divorce arises, it is important to know your rights, understand the law and the marriage dissolution process in Arizona, divorce lawyer Tiffany Fina Esq is here to help you by executing this process as quick and painless as possible.
Who Carries Out The Business Valuation?
If a business interest is small and not dispute about the worth exists, then the spouses can merely stipulate the worth and utilize that value when the marital property is divided. In cases where the interest is small and not too complex, lawyers may valuate the business. However, the attorney who is representing the client who owns the interest in the company will argue that the value is fewer as opposed to the lawyer who is representing the client who doesn’t have the ownership interest. Often an expert must be hired to assess the finances, history, liabilities, assets and other aspects of a business to establish the value. Such an expert is usually an accredited senior appraiser (ASA) or a certified business appraiser (CBA). In certain cases, a certified public accountant (CPA) must be approached to help determine the value of a business interest.