Why the figure is disputed
Valuing a business in a divorce involves choices that can move the result substantially, including which method fits and what date the value is measured on. Another is how much of the value depends on the owner personally rather than on the business, since goodwill tied to one person's skills may be treated differently from goodwill that would transfer in a sale, and approaches vary by state. Whether the business began before the marriage matters too, because growth during the marriage may be partly marital in New York even when the business itself was not. New York also no longer treats a professional license or degree as marital property, although contributions toward it can still be considered.
Records the valuer will ask for
Valuers usually request several years of business tax returns, financial statements, general ledgers, payroll records, loan applications, and governing documents. They also look at how the owner is paid and whether personal expenses run through the business, since that affects true earnings. If you are the non-owner spouse, gather what you can lawfully reach and tell your lawyer what you know about how the business operates. If you are the owner, keep the business running normally, avoid unusual transactions, and do not delay income or invoices in ways that could look like manipulation.
Avoiding double counting
The same income stream can show up twice: once in the business's value and again in the owner's income for support. New York courts watch for this, and how the valuation and the support calculation fit together is often a negotiated point. In an early meeting we decide whether a single neutral valuer, separate retained valuers, or an agreed figure makes the most sense, and when the valuation should be done. We also consider how the non-owner spouse's share could be paid without forcing a sale. Bring what you know about the business's history, ownership, and finances.
