Business Valuation

In California, any business created during the marriage will be considered community property. This means that when assets are divided during the divorce process, the other spouse is legally entitled to half of the value of the business.

To the extent the business was created before the marriage, or after the date of separation, the owner-spouse would want to calculate the Separate Property value of the business and identify that from the Community Property value of the business.

Preliminary Document List of Information needed for Business Valuation

You may not have all of these items, but please review the list and put as many documents as you have into the Client Provided folder in the Dropbox.

A. Website name or description of company

b. BRIEF description of what you do/sell (if not on the website

B. Business formation documents (LLC, partnership, C-Corp agreements, etc.)

C. Copy of lease of Real Estate (if applicable)

D. 3 years Federal & CA tax returns with all schedules including detailed depreciation schedule.

E. 3 years P&Ls (detailed by quarter or month please in excel format) and end of year BS for 3 years

F. Describe systems for job accounting – specifically how are job estimates done, systems used in field, etc if applicable

G. Describe inventory accounting; provide listing (if perpetual) or copy of worksheets from last inventory count

a. .

INFORMATION THAT MAY BE REQUESTED IN THE FUTURE

H. Bank statements 3 years-current

I. We may need to review credit card statements if a lot of expenses are paid that way.

J. Any other items that you will want to explore in valuing the business.