Effective Business Valuations & Forensic Accounting In Marital Disolution Matters

Many family law matters become contentious and emotional. However, California is a community property state and each marital dissolution case has an end in sight, i.e., the division of assets.¹ In contrast, other types of civil litigation are fraught with unknowns including rulings on liability and whether the court will find economic damage analyses, such as plaintiff's lost profits and defendant's disgorged profits, acceptable measures. The narrower focus in marital dissolution litigation can provide an opportunity for efficient and effective solutions. A major key to efficient resolutions in divorce proceedings involving business assets is: (1) a business valuation supported by incisive research and analysis, and (2) forensic accounting of all relevant records and systems to assist in calculating the proper revenues and profits for the valuation.