There are 31 million entrepreneurs in the US and 10 million self-employed adults. A divorce creates its own et of unique issues in the division of assets, especially if the husband and wife started the business together. A divorce can have a significant impact on operations and cash flow and can put the business at risk of losing employees. In this episode, Shannon Farr, CPA, ABV, CFF, of Elliott Davis, helps to unpack how to process valuing the business as part of a marital estate.

Shannon answers the main options for the business when a divorce happens, such as paying out the value of the business over a period of years.

What happens if one spouse is not involved in the business? Is there a consideration for the person who made the business their life's work?

What are the tax implications for transfer of property and are there options to mitigate?

In self-employment, oftentimes revenue is from cash and may be harder to track. Shannon shares how forensic accountants go about discovering hidden assets as well as determining what the expected revenue should be.

Guest: Shannon Welch Farr, CPA, AICPA, Elliott Davis. Contact: shannon.farr@elliottdavis.com

Facebook: @silverdivorcepodcast

Email: silverdivorcepodcast@gmail.com

Produced by: Whitfield Media Group, Chattanooga, TN

Edited by: Tyler Owens

About your hosts: Lisa McCluskey is a retired healthcare executive who was blindsided with divorce after a 34-year marriage. She founded the podcast to share the knowledge and educations she gained during the process in order to help others avoid the pitfalls she fell into. This podcast is a labor of love.

Pat Owens has been a divorce Care facilitator for some 20 years and understands and guides people through the emotional cycles of divorce. She herself experienced a divorce after a long-term marriage and has a heart for helping others.

Please leave us a rating and a review. If you have a question, leave it in your review and we will answer on the air!