In a divorce, reaching an spouse (usually the husband) may be far more emotionally attached to the business than the other, and he may be far more threatened. A man who has spent his life building a business may feel more toward it than the wife he is divorcing, and because both parties this, it can be an Achilles heel for him and a weapon for her.

In some cases, part of the value of the business may be spouse had an established business when he or she married. One veteran divorce lawyer says of the complexities of these valuations, "You cannot approach this issue yourself."

In divorce, these entities must be appraised by various experts who use different methods to place a value on the fair value, "good will," salaries versus distribution of profits, return on capital -- make this calculation difficult and subject to dispute in divorce actions.

Typically, the value of a business, private and public, comes from 1) its assets, 2) its real earnings and 3) its risk and desirability.

Unlike ownership of public traded corporations, where a party owns stock, ownership of a private company lends itself the hiding of assets. For this reason, forensic accountants often are enlisted to appraise these entities.

See Fair Market Value; Fair Value; Good Will; Closely Held Corporation.

See also Minority Discount.