Pursuing Fair Valuations and Divisions Through a Peaceful, More Harmonious Process
The valuation and division of professional businesses like medical, dental and legal practices stands out as a minefield of potential conflict even within the conflict-ridden area of divorce law. Why?
It can be exceedingly difficult to determine the true value of businesses whose primary assets are its income/cash flow and the personal good will of the professional driving that cash flow. Frequently, these situations create disagreements which lead to hostility and conflict. Preparing yourself to survive a traumatic year or two of discord may seem like your best tactic going forward when a divorce that will involve the valuation and division of a professional practice business. There is, however, another way.
In a Collaborative Law case, the value of a professional practice or other business assets are important just like in the litigation process; worth is still calculated by examining, not hard capital in most cases, but multiples of cash flow. There are, however, significant differences. Collaborative Law:
- Addresses not just the money involved but the emotions that can lead to and worsen conflict.
- Allows for consideration of both enterprise goodwill and personal goodwill and the inter-relatedness of the cash-flow valuation method and the need for alimony and child support.
If you face a pending divorce or marriage Dissolution and would like more information regarding asset division and Collaborative Law I, Maury White, Attorney at Law, can provide useful answers and information via a no-charge consultation. I can also offer highly effective Family Law and Collaborative Law legal services. I have practiced Family Law since 1978, have practiced Collaborative Law since 2000 and am one of only 106 attorneys in Ohio certified by the Ohio State Bar Association as a Family Law Specialists. To learn more, please contact my office.