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PropertyBusiness

Valuing his small business in the divorce

CAstarting_over_20261 month ago

He owns a contracting business. Books are messy. How do we value it?

1 reply

✓ Verified answer from a licensed attorney — shown first

Carmen Reyes avatarCarmen ReyesVerified Attorney1 month ago

Business valuation in divorce is its own specialty. Common methods: capitalization of earnings, market multiple of revenue, asset-based (rare for service businesses). The dollar at stake usually justifies hiring a forensic accountant / business appraiser ($4-12k) under Evidence Code §730 — a 'neutral' expert agreed to by both sides costs less than dueling experts. Pereira vs Van Camp is the case law that controls how much of the business growth is community vs separate when the business existed before marriage. A messy-books business is exactly the case where a §730 expert pays for itself.

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Please readThis is a community space for sharing personal experience — it is not legal advice, and posts here are not from Lawma or your attorney. We strongly encourage you to post under an anonymous handle, keep questions general, and avoid posting private details of your active case. For advice about your own situation, message your attorney.