A business showing $40,000 on a tax return was professionally valued at more than $20 million.

Those numbers sound impossible together until you understand that taxable income and business value are measuring two very different things. A valuation can account for revenue, assets, historical growth, competitors and the position the company has built in its market.

That’s why a meaningful business in a divorce can’t be evaluated by glancing at what the owner reported as income last year. When millions of dollars in value could be involved, getting a professional valuation isn’t overkill. It’s due diligence.

Stoy Hall, CFP®

Stoy Hall, CFP®, is the host of NoBS Wealth® and founder of Black Mammoth®, a modern family office. He built NoBS Wealth to have the honest money conversations the industry avoids, cutting through the jargon to talk money, mindset, and behavior with business owners and everyday people done being talked down to. No shame, no BS, just the truth and a plan.

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