A reliable business valuation is required in a divorce since the business or professional practice is typically not divided between the spouses. Rather, the "out-spouse" receives different assets of equal value. This often leads to a situation where the spouse retaining the business favors a lower value while the "out-spouse" favors a higher value. Forensic accounting may be required where there is a perception of "foul play" by the "in-spouse" in an attempt to depress the value conclusion. The emphasis is on the true economic performance of the business.
