{"id":414133,"date":"2026-10-12T07:36:46","date_gmt":"2026-10-12T12:36:46","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/?page_id=414133"},"modified":"2026-10-12T08:29:49","modified_gmt":"2026-10-12T13:29:49","slug":"how-to-value-a-business-for-a-divorce","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/family\/divorce\/how-to-value-a-business-for-a-divorce.html","title":{"rendered":"How To Value a Business for a Divorce"},"content":{"rendered":"\n
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How To Value a Business for a Divorce<\/h1>\n\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Business valuation<\/span> in divorce<\/span> is the process of determining the financial worth of a company as marital property<\/span> to ensure a fair division of assets between spouses. Courts and forensic accountants<\/span> assess this value using income, market, or asset-based approaches<\/span> while accounting for spousal contributions, liabilities<\/span>, and goodwill<\/span>. These valuations heavily influence property settlement outcomes under community property or equitable distribution<\/span> laws.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n

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Property division<\/span> during a divorce can be one of the most contentious areas of the process, second only to child custody and child support<\/span>. If one or both partners own a business, things can become even more intense. Regardless of whether one or both spouses own a company, the question of what it\u2019s worth as marital property<\/span> creates headaches and emotional trauma on both sides.<\/p>\n

How a business gets divided depends largely on how your state divides marital assets<\/span> in a divorce. Your\u00a0business valuation<\/span>\u00a0will differ depending on whether you are in a community property state or an equitable distribution<\/span> state<\/span>. It also matters whether you own the business alone or jointly with your spouse.<\/p>\n

This article explains the process of valuing a\u00a0business in a pending divorce. If you have further questions, FindLaw\u2019s Divorce and Business Ownership<\/a> section can be a tremendous resource. Your family law attorney<\/span><\/a> should provide additional legal guidance.<\/p>\n

Valuing a Business<\/h2>\n

States fall into two categories for dividing property in a divorce. Community property<\/a> states divide all marital property<\/span> equally. Equitable distribution<\/span><\/a> states<\/span> divide property according to what seems fair or \u201cequitable\u201d in the marriage. When determining a business valuation<\/span> in divorce<\/span>, the company may be valued in several ways. These methods aim to determine the business’s \u201cfinancial value\u201d so it can be split between the parties. These include:<\/p>\n