They are going to be approached by the forensic accountant in a different way. A lot of times there are businesses like a sign-making business, t-shirt business, or a clothing company and there are hard assets associated with that.
Usually, when there’s a professional practice like a doctor’s office or a legal practice, there aren’t too many hard assets to value and there is a different, more intangible value, like a good-will number might be a little bit larger than would another type of business. But it really behooves the litigant to either their own forensic accountant or to have the court appoint a forensic accountant to value the business.
There are certain valuation methods that the forensic accountants use and are more appropriate for some businesses over others, but the method of valuation is a little different. But it still can be valued and there is still substantial value to a professional practice.
Ann A. Thomson is a family lawyer practicing in Seal Beach, California. She serves clients throughout the Orange County and southern California area.