Areas of law are often viewed as separate entities. For example, if you have a family law matter, most average Australians would view business law as separate and detached. However, in reality, your business life and your family life will be closely linked if you have a family law matter.
There are 2 ways your business can be viewed:
Whether a business is viewed as an asset, a financial resource or both will largely depend on what type of business it is. This blog post will look at briefly the issues which arise when your business is viewed as an asset.
Business as an Asset
A business is an asset. This is quite simple when you think of the stock that a business holds. A business is also an asset because it has goodwill (the market value attributed to the recognizable brand name) and it may have ongoing contracts and other income producing assets.
However, every business is different. This presents an issue - how do you value a business? Do you base your valuation on the assets held? Do you value it off the yearly revenue and future projections? Essentially, if you can resell your business, it should be viewed as an asset. There are a number of ways to value a business. To place the business on the balance sheet or to consider if and how the property settlement will be affected, the business needs to be attributed a value as at the time of negotiating a settlement. If you own shares in a business, they will also be viewed as an asset.
If you have a family law matter, concerns about your family business or questions about family law and separation in NSW and want to find out more please do not hesitate to contact us on 9688 6023 or email us at info@franklegal.com.au
This article is provided to the reader for general information. It is not legal advice. It was written by Andrea Spencer & Emily Graham and edited by James Frank.
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