Dividing a business in a divorce can be a tremendous task emotionally and practically. There does not exist a specific method to come to the true value of the business, but it is necessary that the truest value is identified because – if not – problems can arise later and one spouse may find him or her suing the other spouse for fraud or another similar criminal activity. Knowing how to obtain the true value of a business during a divorce is the first step of the process.
How is the true value of a business determined in New Hampshire?
For division purposes due to a divorce, there are three different methods that can be used to derive at a pretty accurate value of your business:
- the asset approach;
- the market approach; and
- the income approach.