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Complex Divorces Requiring Business Valuations

Equitable distribution becomes even more complex when one of the parties owns a business, professional practice, or when the parties jointly own and operate a business. In effectuating an equitable distribution of a business, it is often necessary to have a complete business evaluation prepared to analyze the total monetary value of the business, including projected income and cash flow. This is often done by a forensic accountant employed to work with counsel.

There are three principal methods that can be utilized for valuing a business: the income or capitalized earnings method, the market approach method, and the cost approach method.  Steneken v. Steneken, 367 N.J. Super. 427 (App. Div. 2004)


 

 

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