North Carolina is an equitable distribution state. This means that marital assets acquired during the marriage must be valued and that the marital estate be distributed between the parties. Very often, parties to a separation and divorce own in interest in a small business. Most people don’t realize that the business owner’s marital interest in the business will have to be valued for purposes of equitable distribution.The following is a simple fact pattern which illustrates what business owners involved in a separation and divorce need to know. John Businessman is an 80% shareholder in a closely held corporation that he formed prior to marrying Susan. After fifteen years of marriage, John and Susan are divorcing and the company is being valued as part of the marital estate. What do business owners like John and Susan need to know about valuing their business in the event of divorce? (more…)