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What business owners should consider during a divorce

Washington couples whose marriages are coming to an end may find that resolving a divorce is a complex process. It may be even more so when one of the parties owns a company. This is because it may be necessary to establish the company's value as well as establish that an owner isn't misrepresenting its income. When valuing a company, it is important that an appraiser have all the information necessary to come to an accurate conclusion.

Key information may be gleaned by looking at financial records, talking with management and taking a look at the facilities. An estimated value will be created by looking at the value of assets or how much the company generates in revenue. An estimate may also be made by looking at what similar companies may be valued at. Adjustments may be made as they relate to calculating a business owner's income.

For instance, one-time income or expenses may be disregarded in an effort to determine how much money a company makes per year. Creating such a benchmark may make it possible to create a fair agreement or allow a judge to create a fair ruling. Keeping track of a company's income and expenses may also reduce the odds that an individual is subject to an audit or other scrutiny from the IRS.

When a marriage ends, individuals may be making decisions based on their emotions as opposed to what may actually be in their best interest. This is why many estranged couples have their respective attorneys take the lead in negotiating a comprehensive settlement agreement.

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