NEWS & INSIGHTS

When a partner in a small- or medium-sized closely-held business is involved in a divorce mediation, valuation becomes even more complex.

When small business owners are involved in a divorce mediation, determining its value becomes more complex than assessing a sole proprietorship. Unlike a sole proprietorship that depends entirely on the owner's labor, a business with employees may have intrinsic value beyond just the owner's contributions.

Sole Proprietorships should be very straightforward in a divorce mediation. In most cases, the business itself has no inherent value without the owner.

Many small business owners are masters of their craft but often may not understand how their income and assets play into their divorce. This can affect child support, spousal maintenance, and asset division.