Who Pays for a Business Valuation?
Maiwald v. Maiwald, 2022-NCCOA-321 (unpublished) (2022)
In North Carolina, Equitable Distribution (ED) cases will classify, value, and distribute marital assets in a fair way. One major component is classification, as separate property (typically property not acquired during the marriage) is not distributed. If a party owns a business, however, even if the business was started before the marriage, it may have a significant marital component. If the business is marital, how do you value it? Value matters a lot. In distribution, the court will presume a 50/50 split and will also try not to split a business. (The record of ex-spouses working well together is not good.) So a bad valuation could result in a lopsided division. Courts will sometimes require the use of a certified business appraiser or business valuation expert. Continue reading →