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Determining value for online assets

| Jul 7, 2021 | Property Division |

Dividing assets can be one of the most challenging parts of any divorce. That’s especially true now that the types of assets people accumulate are changing rapidly. For example, when a couple in Texas divorced in the past, they might have to have valued a family business and bought one spouse out. That’s still fairly common. But those were brick-and-mortar companies. Today, many people need to value an online business or website as a part of their split.

Determining value

Determining the value of any family business is important for property division during a divorce. This requires real expertise. The person doing the valuation needs to know the expenses, revenues and track record of the given business. They should also have some understanding of any local competition, and a feel for the industry at large. There are competent and incompetent people valuing assets in every field. Finding someone who understands the online world is key in valuing an e-commerce asset.

Nuances to understand online

One thing that a good valuation expert will take into account is the amount of traffic a business website is receiving. Looking at trends in this data can also be very revealing. Valuation experts should also be familiar with things like Alexa ranks. These steps should be an additive to, not a replacement for, standard valuation practices. Looking at transaction histories and profit and loss statements remains important for all businesses.

If you are going through a divorce, talk to your attorney about valuing your online assets. This is an increasingly common issue. Many lawyers will be able to provide referrals for professionals who are qualified to value online assets.