The standard of value used for appraisal / valuation report is “marital value” as required by the San Diego County Superior Court Rules.  The term marital value means   the investment value of the business interest to a hypothetical, objective investor, considering the following factors:

• Since there will be no change of ownership, there will be no reduction in value to reflect the risk inherent in a transfer of the business interest.
• Pursuant to Family Code section 771, in establishing sustainable earnings, separate property attributable to the operating spouse’s efforts after the date of separation will not be considered.
• There will be no reduction in value for capital gain or other taxes associated with a sale.
• A business may have “marital value” even though it is not saleable.
• The business interest being valued may include assets and liabilities, which would not be included in a sale, such as cash, accounts receivable, accounts payable and non-operating assets and/or liabilities.

A.M. Golden Accountancy Corporation offers a free initial consultation - To speak with Mr. Golden immediately, please call his direct line by dialing (760) 444-1913.  If you’d prefer, you may also send an email: al@amgolden.com