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Business Valuation in Divorce

The question of how to value private companies in marital dissolution proceedings has been wrestled with for many years. Several valuation methods have been used, although some that are commonly used, and perhaps favored, for other valuation purposes are effectively banned from use in divorce cases due to interpretations of existing case law. Two significant valuation methods, the Guideline Public Company Method (GPC method) and the Discounted Cash Flow Method (DCF method), have been largely excluded from use in divorce cases in some states. This article addresses the GPC method, and when it would be appropriate to use. At a later date, Part Two of this article will address the DCF method.

26 minute read June 27, 2005 at 11:11 AM
By
Vanita M. Spaulding
Business Valuation in Divorce

Part One of a Two-Part Article

The question of how to value private companies in marital dissolution proceedings has been wrestled with for many years.

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