Company Valuation in Divorce: How It Works

When a marriage comes to an end and one or both spouses own a company, a family business, or corporate shares, the division of assets becomes an extremely complex and delicate matter. The correct valuation of these assets is a fundamental step to ensure a fair separation and protect the financial future of both parties. Understanding the legal criteria and appraisal methods is the first step to approach this process with awareness. As a divorce lawyer in Milan, lawyer Marco Bianucci has gained extensive experience in managing these cases, which require not only legal expertise but also a strategic and multidisciplinary vision.

The Regulatory Context: The Company in Community Property

In Italy, the legal marital property regime is community property. If spouses have not opted for separation of property, everything acquired or started after the marriage falls, in principle, into the community. For companies, the law distinguishes between two main scenarios. If the company is managed by both spouses and was established after the marriage, it falls into immediate community. If, however, the company belonged to one of the spouses before the marriage or was established by only one of them afterwards, the principle of 'community of residual assets' applies. This means that, at the time of the dissolution of the marriage, the company itself is not included in the division, but only the profits and increases in value it has generated during the marriage.

Criteria and Methods for Company Valuation

Determining the value of a company or corporate shares is not an exact mathematical calculation but the result of a complex analysis requiring the intervention of qualified professionals. There is no single universally valid valuation method; the choice depends on the nature of the business, its size, and the reference market. The main methods used include the asset-based approach, which is based on the book and market value of company assets, the income-based approach, which projects the company's ability to generate future profits, and the mixed approach, which combines the two previous methods. The valuation must be objective, documented, and based on concrete data, such as financial statements, cash flows, and industry analyses. For this reason, it is essential to rely on a technical appraisal prepared by an expert accountant or auditor.

The Approach of the Bianucci Law Firm

The approach of lawyer Marco Bianucci, a divorce lawyer with consolidated experience in Milan in complex property separations, is based on rigorous and multidisciplinary analysis. Each case is handled by creating a working group that includes, in addition to the lawyer, trusted appraisers and financial consultants. This allows for a solid and defensible company valuation in court, taking into account all variables involved. The objective is twofold: on the one hand, to ensure the client the fair recognition of the patrimonial value to which they are entitled; on the other hand, to explore solutions that, where possible, preserve the continuity and operation of the company, finding a balance between legitimate economic claims and business stability.

Frequently Asked Questions

If the company was mine before the marriage, is it included in the division?

No, the company itself remains personal property. However, if the marital property regime was community property, the non-owner spouse is entitled to half the value of undistributed profits and increases in the company's value accrued during the marriage. The valuation of these increases is one of the most complex points and requires in-depth accounting analysis.

How is the value of shares in an LLC calculated in a divorce?

The value of shares in a Limited Liability Company (LLC) is determined through an appraisal. The appraiser analyzes the financial statements, the asset situation, historical and prospective profitability, and the market value of similar assets. The company's bylaws may contain specific clauses that affect the transferability and valuation of shares, aspects that must be carefully examined by the lawyer.

What happens if no agreement is reached on the company's value?

If the parties do not reach a consensual agreement on the valuation, the matter is referred to the judge. The judge will appoint a Court-Appointed Technical Consultant (CTU), an independent expert, to prepare an official appraisal of the company's value. The CTU's report will form the main basis for the court's decision, although the parties may contest it through their own technical consultants.

Is it possible to avoid selling or liquidating the company?

Absolutely yes. The primary objective is often to preserve the integrity of the business activity. The most common solutions include the cash settlement of the share due to the non-owner spouse by the other spouse, or the compensation of the value with other assets forming part of the common property (e.g., real estate or financial assets).

Contact an Expert Lawyer to Protect Your Assets

The division of business assets during a divorce is one of the most challenging aspects of family law. Facing it without expert legal guidance can lead to significant financial losses and compromise the future. For an accurate valuation of your case and to define the most effective strategy to protect your interests, contact the Bianucci Law Firm. Lawyer Marco Bianucci receives clients at the Milan office to offer clear and strategic advice.