Business Valuation in Divorce

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Why Valuation Drives These Cases

Where the estate holds an operating business or a professional practice, the valuation usually determines the outcome more than any argument about how to divide. Md. Code Family Law § 8-205 requires the court to determine what is marital property before granting a monetary award, and for a closely held interest that determination rests on expert evidence rather than on either spouse’s view of what the business is worth.

What an Appraiser Actually Needs

A credible valuation requires financial statements across several years, tax returns, entity documents, customer or payer concentration data, compensation records for the owner, and access to management. The operating spouse controls most of that material, which is why valuation disputes so often begin as discovery disputes. Md. Rule 2-433 allows the court to issue orders that are just where a party fails to comply, including dismissal, default judgment, or contempt for willful failure.

Enterprise Value and the Owner’s Personal Role

Where a business depends on the owner personally — their reputation, their relationships, their continued presence — some portion of what looks like value would not survive a sale. Distinguishing that from value belonging to the enterprise itself is a recurring dispute in professional practice cases, and it is where opposing appraisers most often diverge while working from the same records.

Where the Gap Between Appraisers Comes From

Two competent appraisers reach different numbers because of a small number of assumptions: the valuation date, the treatment of owner compensation, the discount applied for lack of marketability or control, and how much of the goodwill is personal. Identifying which assumption actually drives the difference is usually what makes settlement possible, because the parties are rarely as far apart as the two conclusions suggest.

Frequently Asked Questions

How is a business valued in a Maryland divorce?

By expert evidence. Md. Code Family Law § 8-205 requires the court to determine what is marital property before granting a monetary award, and for a closely held interest that means an appraisal supported by financial records, entity documents and management interviews.

What if my spouse will not produce the records?

Md. Rule 2-433 allows the court to issue any orders that are just when a party fails to comply with a discovery order, including dismissal, default judgment, or contempt for willful failure to comply.

Why do the two appraisals differ so much?

Usually because of a few assumptions: the valuation date, how owner compensation is treated, discounts for lack of marketability or control, and how much goodwill attaches to the owner personally rather than to the enterprise.

Does the business have to be sold?

Not ordinarily. Md. Code Family Law § 8-205 allows a monetary award as an adjustment of the equities, which lets one party retain the business while the other is compensated from other assets or by the award.

Mr. Sris and the Firm’s Of Counsel Attorneys

Mr. Sris, Owner and Founder of Law Offices Of SRIS, P.C., has practiced since 1997 and is admitted in Virginia, Maryland, the District of Columbia, New Jersey, and New York. He is a former prosecutor, and his background in accounting and information systems from George Mason University is applied to complex financial and technology-related cases. Maryland family matters are handled by Mr. Sris and the firm’s Of Counsel attorneys.

Request a Consultation

To discuss a Maryland family law matter with Law Offices Of SRIS, P.C., call (888) 437-7747 and request a consultation. The intake line is staffed 24/7.

Last updated: August 25, 2026

This page provides general information about Maryland family law and is not legal advice. Reading it does not create an attorney-client relationship. Every case turns on its own facts. Results may vary.

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