You wouldn’t want to do it unless it’s necessary. However, there are different ways that you can work with a business valuator to make it more cost-effective. For example, you could hire a joint business evaluator rather than each party obtaining their own business valuator. You would not only utilize the business valuator to determine the value of the business for equitable distribution purposes, but also to look at the stream of income that the business is spinning off for the purposes of alimony and child support.
For example, the business valuator would look to see what expenses is the business paying for the business owner? Are you paying the car expenses? Are you paying personal restaurant expenses? Are you paying certain travel expenses? All of these are different add-backs that would be important for the purposes of calculating alimony as well as calculating child support.
Also, a way to save money in the business valuation process if you were to use a joint business valuator is to also utilize the professionals that work within the actual business. The accountant for the business should be talking directly to the business valuator to get them whatever documents they use in their tax preparation and the bookkeeper to provide the spreadsheets and the monthly reconciliations. The more the parties co-operate, the better it is in order to minimize the costs of the business valuator.
Alison C. Leslie, Esq. practices family law exclusively in her Morristown, NJ offices, where she offers her clients the individualized attention of a solo practitioner with the experience of a larger firm.