An investment made by one spouse to further the career of the other, whether monetary or otherwise, represents a significant sacrifice in anticipation of a greater future income gained as a result of that sacrifice. The efforts of both parties during the marriage when establishing a business, lead to the creation of “wealth” or marital property requiring valuation.
In a New York divorce action all assets must be equitably distributed in order for the case to be considered “settled”. The term “asset” not only applies to tangible items, such as real estate, personal property, bank accounts, pensions and/or investment accounts, but also includes intangible assets such as the value of a business which was established during the marriage.
In the State of New York, a business owned by one or both of the parties can be considered an asset in a divorce proceeding. In New York divorces, the “enhanced earning capacity” of either, or both of the parties, may be treated as an asset with monetary value.
The issues that surround the valuation processes of a business or the other intangible assets stated above are often very complex, requiring one or more experts to properly assess calculate and evaluate these assets. There are proper steps that need to be taken to insure the accuracy the equitable distribution valuation process; most importantly:
- The classification of the asset as marital or separate property; and
- The valuation of the asset(s) in question.
Ultimately, the above needs to be completed with precision so that the distribution of the asset can be effectively negotiated.
When dealing with these life altering situations, the skill and expertise of an attorney who specializes in New York matrimonial law and high net worth divorces is immeasurable. We work diligently with business valuation experts and forensic accountants, which assists us in effectively representing your best interest when values are placed on businesses connected to the marriage. Through our connections and numerous working relationships affiliated with our area of law practice, we are at the forefront of any issue that may arise and have the knowledge and experience to actively litigate or negotiate the best possible outcome for our clients. We pride ourselves on our thorough analysis and preparation of each of our cases which assists our firm in effectively advocating for you.