Definition Closely Held Corporation - a corporate entity with privately owned stock, as opposed to one traded publicly on an exchange.
Application in Divorce Same as a private company.

In divorce, these entities must be appraised by various experts who use different methods to place a value on the corporation for purposes of marital distribution. Many factors -- including fair market value versus fair value, goodwill, salaries versus distribution of profits, return on capital -- make this calculation difficult and subject to dispute in divorce actions.

The problem of appraisal is made more complicated because one spouse (usually the husband) may be far more emotionally attached to the business than the other, and he may be far more threatened by the appraisal and the cost of holding on. In some cases, part of the value of the business may be separate property and the remainder marital property, as in the case where one spouse had an established business when he or she married.

One veteran divorce lawyer says of the complexities of these valuations, "You cannot approach this issue yourself."

See Fair Market Value, Fair Value, Good Will.

See also Marketability Discount and Minority Discount.

Don't Forget to Visit Our Online Support Community

Questions & Answers
Helpful Tips & Facts
  1. Yours, Mine and Ours
    In a divorce, the value of a family business is often very problematic.
    Generally, divorcing spouses have three options: 1) one spouse keeps the business; 2) both continue to work in the business; or 3) sell the business. Strangely, many men and women who strike out as married couples can work together quite well as business partners.
Additional Resources
Evaluating A Business or Professional Practice in Divorce
Divorces often times present the issue of the value of a Family business. The departing spouse often times hopes to value the business based upon future capabilities?
The Discount Divorce Bookstore Discounts
Visit the Original Online Divorce Bookstore for quick and easy access to quality books, manuals, divorce forms, software and other divorce related products. The store delivers you these products in a confidential and secure fashion with excellent customer satisfaction. All of our products are in stock and are shipped to you within one business day of the order by U.S. Priority Mail. Help Us - Help You.

Browse the Store Categories...

Books We Publish Child Support Children and Divorce
Custody & Visitation Divorce (General) Do It Yourself Divorce
Domestic Abuse Friendly Divorce Grandparent’s Rights
Infidelity Mediation Men Only
Military Divorce Property and Financial Aspects Recovery From Divorce
Religion and Spirituality Saving Marriage Separation
Women Only
Find Divorce Professionals We have an ever-growing list of divorce professionals that contribute to DivorceDex.com. To view a list of professionals in your area, please select your state:
ALERT: If you are a divorce professional (attorney, mediator, counselor, financial planner, etc.) generating new clients by joining the directory is easy and free.

FastFacts
#589: When you file your divorce papers and have your spouse served, this information becomes public knowledge and rarely does reconciliation ever take place once this action is taken. Make sure it is really what you want.
FastFact Sponsor
QdroDesk.com
Advertisement QdroDesk
QDRO Preparation - QdroDesk™ is an industry proven online service providing an instant, easy, accurate, and affordable method for obtaining Qualified Domestic Relations Orders (QDROs).
Advertisement 123DivorceMe
Online Divorce - With or without children, 123DivorceMe.com is the fastest, easiest, and most affordable way to file your own uncontested divorce.
Advertisement Parenting Through Divorce
Online Parenting Class - Avoid the hassle of completing the mandatory course by taking the "Positive Parenting Through Divorce" class online.