New York, NY – Richard Roman Shum, Esq., a Manhattan divorce lawyer at the Law Office of Richard Roman Shum (https://www.romanshum.com/my-spouse-owns-a-business-how-is-it-valued-in-our-divorce/), released in-depth guidance for cases involving privately held companies in New York divorces. The resource explains how courts classify a business as marital or separate property, how appreciation is analyzed, and how valuation outcomes influence equitable distribution and support determinations under Domestic Relations Law § 236. The publication outlines practical steps for selecting valuation dates, engaging forensic accountants, and documenting active versus passive appreciation to protect financial interests during litigation.
The guidance emphasizes that a Manhattan divorce lawyer must present clear evidence on whether a company is marital property, separate property, or a hybrid reflecting appreciation during the marriage. It details the statutory factors courts weigh when distributing assets, including the parties’ income at marriage and at commencement, the length of the marriage, health and age, liquidity considerations, tax effects, and the feasibility of preserving a closely held company intact under one spouse’s control. The material also explains how commingling can shift separate property into the marital estate when funds or ownership interests are mixed without clear tracing, and why disciplined record-keeping often proves decisive.
A dedicated section addresses valuation mechanics and dates, noting that actively managed businesses are commonly valued as of the date of commencement, while courts retain discretion to use a later date when events between filing and trial materially alter value. The document outlines how forensic accountants perform normalization to derive defensible earnings by adding back non-business or discretionary expenses, such as excess compensation, personal vehicle charges, family travel, club dues, and below-market related-party transactions. It further distinguishes enterprise goodwill, which is transferable and potentially marital when developed during the marriage, from personal goodwill tied to an individual’s reputation. The guidance tracks the January 23, 2016 amendment to Domestic Relations Law § 236(B)(5)(d), which eliminated direct valuation of enhanced earning capacity from licenses and degrees while allowing courts to consider a spouse’s direct and indirect contributions when distributing other assets.
The resource also surveys practical outcomes in high-asset cases, including buyouts funded by lump sum or structured distributive awards, asset offsets using real property or investment accounts, sale with equitable division of net proceeds when other solutions are unworkable, and the limited circumstances in which former spouses continue as co-owners under carefully drafted agreements. Throughout, the material clarifies how a Manhattan divorce lawyer can coordinate litigation strategy with valuation workstreams so that the chosen remedy compensates the non-titled spouse fairly while preserving operational continuity whenever possible.
About Law Office of Richard Roman Shum, Esq.:
The Law Office of Richard Roman Shum represents clients in New York City in matters involving divorce, equitable distribution, child custody, maintenance, and high-asset property division. The firm handles cases that involve privately held businesses, professional practices, and financial records across Manhattan, Brooklyn, Queens, and the Bronx. The practice provides strategic representation grounded in careful financial analysis and courtroom advocacy. For consultations, contact (646) 259-3416 or visit the firm’s website to schedule a confidential case review.
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Email: richard@romanshum.com
Website: https://www.romanshum.com/
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