Throughout a marriage couples in New York can acquire many different things. These assets can grow in number, value and variety the more a couple earns during the marriage. That is why the asset division portion of high asset divorces can be such a complicated process. Couples with many assets will first have to go through the process of finding all the assets that they may own and then they will have to value those assets, which can be very time consuming as well.
As mentioned above, the more a couple earns the more assets they may obtain. However, in some instances the way that the couple earns their income is an asset as well. This is true in situations where one or both spouses own a company either individually or as a couple. Businesses are assets just like a bank account or a house. Just like those assets, the couple will need to know the value of the business before they can divide it. However, valuing a business can be much more complicated than valuing a house. There are different methods, but there are three basic steps needed to value them.
First the couple needs to determine the gross receipts for the company. This is different than what the owner may report for tax purposes after taking the appropriate deductions. The next step is to determine how the business would be expected to perform in the future. This takes into account how the industry in general is doing. Finally, the business would have to determine the value of all the company's assets or cash/money they have in reserve then subtract the company's debts and liabilities. Then this number would be added to the total value of the company.
Many people in New York own businesses. These businesses are assets in a divorce and therefore the marital value must be determined and then divided accordingly. However, valuing a business is complicated and the couple may need to utilize a business appraiser to ensure they know the true value. Experienced attorneys understand these complications and may be able to guide one through the process.