Business Valuation in North Carolina Divorce

Q: Can a spouse hide income through the company?

Normalization, bank and merchant analysis, and third-party records help uncover off-books benefits, add-backs, or inconsistent compensation.

Quick answer: How are businesses valued in a North Carolina divorce? Courts classify the company (marital, separate, or mixed), then determine value—often as of the date of separation—using accepted methods (income, market, or asset approach). Experts make normalization adjustments to owner pay and expenses, separate enterprise from personal goodwill, and account for post-separation changes as divisible property when appropriate. The result informs equitable distribution by buyout, offset, or co-ownership safeguards.

Get the number right. We build business valuation cases that hold up—clean discovery, neutral or party experts, workable buyouts, and orders that banks and plan administrators can follow.

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Your North Carolina Business Valuation Divorce Lawyer

Krispen Culbertson, North Carolina family lawyer with 20+ years handling valuation issues in equitable distribution: expert selection, discovery, normalization of income, enterprise vs. personal goodwill, buyouts, and tax-smart settlements.

Memberships: North Carolina State Bar; local family law sections. Courts: District Court calendars statewide with regular hearings in Guilford County.

Start by situation

Is the business marital, separate, or mixed?

Pick the valuation approach (income/market/asset)

Owner pay & expenses: normalization adjustments

Enterprise vs. personal goodwill

Discovery plan & core documents

Neutral vs. dueling experts (CVA/ASA/ABV/CPA)

Offset, buyout terms & payment security

Taxes, double-counting & settlement strategy

Fast answers

Valuation date: In North Carolina, marital business value is generally measured near the date of separation; some post-separation changes are handled as divisible property.

Goodwill matters: Enterprise goodwill can count; personal goodwill tied to an owner’s reputation may not be marital value.

Normalization: Adjust owner salary, one-time costs, and perquisites so earnings reflect market reality.

Protect cash flow: Temporary orders can stop waste, preserve records, and keep payroll and taxes current while the case proceeds.

Classify, value, and divide the company

We first determine whether the business interest is marital, separate, or mixed. Then we value it—typically as of the date of separation—and address post-separation changes as divisible property when the law allows. Distribution options include an offset with other assets, a structured buyout, or safeguarded co-ownership in rare cases.

Choosing the valuation approach

Income approach: capitalized earnings or discounted cash flow for stable, profitable companies.
Market approach: guideline company or transaction multiples for comparable industries.
Asset approach: net asset value for holding companies or distressed operations.

Normalization & owner compensation

Experts adjust for owner salary above/below market, related-party rent, non-recurring expenses, and personal expenses. We assemble proof for each adjustment and prevent double counting later in support.

Enterprise vs. personal goodwill

Enterprise goodwill (brand, systems, location, workforce) can be included in marital value. Personal goodwill (owner’s skills and relationships) is often treated separately. We frame the evidence so the right goodwill bucket is used.

Discovery & documents

Tax returns (business & personal) with schedules; financial statements (P&L, balance sheets, cash flow)
Bank/merchant statements; general ledger; AR/AP aging; payroll summaries
Customer concentration, vendor contracts, leases, insurance, licenses
Cap tables, buy-sell agreements, shareholder or operating agreements
For professional practices: patient/engagement metrics and referral sources (de-identified)

Neutral vs. dueling experts

We help choose a neutral valuation for efficiency or prepare party experts when issues are disputed (CVA, ASA, ABV, CPA). Reports are written for court—replicable methods, sourced multiples, and transparent adjustments.

Buyouts, offsets & security

When one spouse keeps the company, the other may receive an offset or installment buyout with interest, security (UCC or deed of trust), benchmarks, and remedies. We avoid terms that choke the business.

Taxes, benefits & settlement

We coordinate valuation with alimony, child support, and retirement/QDRO planning to prevent double-dipping. For pass-through entities, we account for tax distributions vs. compensation and model after-tax outcomes.

What to bring and your first 72 hours

Document checklist

3 years of business & personal tax returns; YTD financials
Bank/merchant statements; payroll reports; general ledger
Leases, insurance, licenses, buy-sell/operating agreements
Customer/vendor summaries; any recent appraisals or offers

Your first 72 hours with our team

1) Classification & date
Confirm marital/mixed status and valuation date.

2) Discovery plan
Issue requests/subpoenas; preserve ESI and accounting access.

3) Expert strategy
Neutral vs. party expert; scope, method, and deadlines.

4) Interim protections
Status-quo orders, reporting, and no-waste provisions.

5) Settlement map
Offset or buyout structure with tax and cash-flow modeling.

FAQs

What is the business valuation process in a North Carolina divorce?

Classify the interest, select the valuation date, choose an accepted method (income, market, asset), apply normalization, address goodwill, and present a report that supports equitable distribution.

Do we have to use the same expert?

No. A neutral expert can reduce cost. In contested cases, each side may hire an expert and the court weighs credibility.

How are personal and enterprise goodwill treated?

Enterprise goodwill can be included in marital value; personal goodwill tied to the owner is often treated separately. We structure proof accordingly.