Handling small businesses in divorce mediation presents several challenges and added complexity to the process. For starters, there may be other owners involved in the company, or it could have been a business passed down within a family. The value of the company under consideration for the asset division is typically the value created during the marriage. Sometimes that substantial, and sometimes there is little to no value to divide.
If you were negotiating your divorce settlement through attorneys or at trial, you would likely rely on a business valuation or possibly two competing expert reports.
Most people who choose mediation to settle their divorce choose it because they don't want to waste marital assets on the divorce itself. Thus, paying $10,000-20,000 for business valuations does not make a lot of sense.
Related post: 10 Ways to Save Money on Your Divorce
Not only does the valuation add quite a bit of cost to the process, but it can also add quite a bit of time to...