Crouse Erickson | Spokane
Crouse Erickson | Spokane
When a marriage involves a professional practice or business interest, the valuation of that asset is often the single most consequential and most contested issue in the divorce.
When a business you’ve devoted years to building must now weather a divorce, working with a team of experienced Spokane business valuation divorce attorneys is likely the best step you can take to protect yourself, your business, and your future.
Why? Because valuation is not a precise science. Opposing experts routinely arrive at figures that differ by hundreds of thousands of dollars, and the outcome depends heavily on the legal and factual arguments each attorney makes around the methodology.
If your divorce involves a business or professional practice, don’t leave anything to chance. Call Crouse Erickson at (509) 624-1380 or contact us online today for a confidential consultation.
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High-asset divorce cases involving business valuations demand attorneys with specific financial knowledge. Several things set our firm apart in this area.
David Crouse has lectured on business and professional practice valuations for the Washington State Bar Association and the Spokane County Bar Association. He has also presented on complex asset divorce cases for the National Business Institute.
He authored Divorce in Washington, published by Addicus Publishing. This is not general family law experience. It is specific, documented authority on the financial issues that drive high-asset divorce outcomes.
We maintain close working relationships with business valuation experts, property appraisers, and forensic accountants across the Spokane area. When your case needs an expert, we know who to call and how to prepare them for testimony in Spokane County Superior Court.
Our team has earned the Avvo Clients’ Choice Award, an Avvo 10.0 Top Attorney rating, and selection to America’s Most Honored Professionals. David Crouse has served as a Spokane County Superior Court Judge Pro Tem. He was elected to the Order of Barristers for excellence in courtroom advocacy.
| What We Handle | How We Help |
| Business valuation disputes | Coordinate experts, challenge opposing valuations, present credible evidence to the court |
| Professional practice division | Separate personal goodwill from enterprise goodwill to protect your financial interests |
| High-asset property division | Apply RCW 26.09.080 factors to pursue a just and equitable outcome |
| Spousal maintenance tied to business income | Guard against double dipping and protect future earnings |
| Complex financial discovery | Identify hidden assets, trace commingled funds, and build a complete financial picture |
Business valuation in a Washington divorce is not a simple math problem. Two qualified experts can look at the same company and arrive at figures that differ by hundreds of thousands of dollars. The method used, the assumptions made, and the legal arguments behind each number all affect the outcome.
Washington is a community property state. RCW 26.16.030 presumes that assets acquired during a marriage belong equally to both spouses. A business started or grown during the marriage is typically community property subject to division.
However, dividing a business is not the same as dividing a bank account. The court needs a credible valuation before it can make a fair division.
Valuation experts generally use one of three methods to determine what a business is worth. Each approach fits different types of businesses better than others.
| Valuation Approach | How It Works | Best Used For |
| Income approach | Projects future earnings and calculates their present value | Professional practices, service businesses with steady revenue |
| Market approach | Compares the business to similar companies that recently sold | Businesses in industries with active sales data |
| Asset approach | Adds up the fair market value of all business assets minus debts | Asset-heavy businesses, real estate holdings, and companies being liquidated |
The choice of method can shift a valuation by hundreds of thousands of dollars. Your attorney’s ability to challenge or support a particular approach directly affects the financial outcome of your divorce.
Goodwill is the value of a business beyond its physical assets. In a Washington divorce, the type of goodwill at stake can make or break the financial outcome for a business owner or professional.
Enterprise goodwill belongs to the business itself. It includes things like the company’s brand, location, client base, systems, and trained staff. Enterprise goodwill can be transferred to a new owner and survives if the original owner leaves. Washington courts treat enterprise goodwill as a marital asset subject to division.
Personal goodwill belongs to the individual. It includes the practitioner’s reputation, personal client relationships, and unique skills. Personal goodwill cannot be sold or transferred. Washington courts generally do not treat personal goodwill as divisible marital property.
The Washington Supreme Court addressed goodwill in professional practices in the landmark case In re Marriage of Hall. The court identified five different methods for calculating goodwill and confirmed that only practitioners with an ownership interest in their practice may possess goodwill subject to valuation. Employees do not.
A practice valued at $2 million looks very different depending on how much is classified as personal versus enterprise goodwill. If $1.5 million is personal goodwill, only $500,000 is subject to division. If most of the value is enterprise goodwill, the non-owner spouse’s share increases significantly.
Getting this classification right requires both strong legal arguments and a qualified valuation expert. Attorney David Crouse’s background in both areas gives our clients a meaningful advantage in Spokane County Superior Court.
Washington does not require a strict 50/50 split of marital property. RCW 26.09.080 directs the court to divide property in a way that is “just and equitable” based on four factors:
These factors give the judge discretion to award a larger share to one spouse when the circumstances support it. A longer marriage with significant community assets will be divided differently than a shorter marriage where one spouse brought a business into the relationship.
For business owners, this means the division depends heavily on the evidence and arguments presented. A well-prepared case with a credible valuation can significantly affect the outcome.
A: Not usually. Washington courts prefer to award the business to the owner-spouse and offset the other spouse’s share with other assets or a buyout payment. Forced sales are rare and typically happen only when no other equitable division is possible.
Our divorce attorneys at Crouse Erickson work to structure settlements that keep your business intact.
A: Disagreement over business value is common in Spokane divorces involving professional practices or closely held companies. Each side typically retains its own valuation expert.
The court then evaluates which expert’s methodology and conclusions are more credible. Having an attorney who can effectively challenge the opposing expert’s work is critical.
A: It depends. A business started before marriage may be separate property. However, any increase in value during the marriage could be community property.
Washington courts look at whether marital effort or community funds contributed to the growth. The analysis gets complicated quickly, and the answer affects how much is subject to division.
Professional practices in Spokane present unique valuation challenges. The value often depends on the practitioner’s personal reputation, which complicates the goodwill analysis.
Physicians and dentists practicing near hospitals like Providence Sacred Heart Medical Center or in clinics across the South Hill and North Side often have practices with significant revenue. The valuation must separate the value of the practice’s systems, location, and staff from the individual doctor’s reputation and patient loyalty.
Attorneys and accountants in Spokane’s downtown business corridor face similar issues. Client relationships in these professions tend to be highly personal. A forensic accountant is a financial expert trained to analyze business finances for legal proceedings. In these cases, the expert must determine how much revenue would survive if the owner left the firm.
Veterinary clinics, chiropractic offices, and similar practices in the Spokane area also require careful analysis. The court considers the practitioner’s age, health, earning history, and standing in the community when evaluating goodwill.
Each of these practice types demands an attorney who can work closely with valuation experts and challenge opposing valuations effectively.
Our approach to business valuation cases combines legal strategy with financial preparation. We do not treat valuation as a side issue. In many high-asset Spokane divorces, the business valuation is the central issue.
We work with forensic accountants and Accredited Business Valuators (ABV) who follow standards set by the American Institute of Certified Public Accountants (AICPA).
Selecting the right expert for your specific type of business matters. An expert experienced with medical practices will approach the analysis differently than one focused on retail businesses.
Opposing experts often inflate or deflate values depending on which spouse hired them. Our business valuation divorce attorneys at Crouse Erickson prepare to challenge methodology, assumptions, and conclusions.
Crouse Erickson partner David Crouse has presented on these exact issues at CLE seminars. That depth of knowledge shows up in cross-examination and written argument.
Double dipping happens when the same income stream is used to value the business and to calculate spousal maintenance (alimony). Washington courts can address this issue, and our team raises it early to prevent an unfair result.
A strong valuation strategy protects your financial future. Call (509) 624-1380 to discuss your situation with our team, or contact us online.
It depends on the complexity of the business. A straightforward small business valuation might take a few weeks. A professional practice with significant goodwill or disputed financials can take several months. Your attorney can give you a realistic timeline once the expert reviews the initial financial records.
Yes, you can and should keep operating your business during the divorce process. Washington courts generally expect business operations to continue. However, the court may issue temporary orders restricting major financial decisions during the proceedings. That includes selling assets, taking on large debts, or dramatically changing compensation structures.
Hidden income or assets are a serious issue in business valuation divorce cases. A forensic accountant can trace financial records, analyze tax returns, and identify discrepancies. Washington courts take financial dishonesty seriously. The court may impose sanctions or award a larger share of assets to the other spouse if concealment is proven.
Yes, the valuation date can significantly affect the outcome. Washington courts typically use the date of trial or a date close to it, but the parties can sometimes agree on a different date. Market conditions, business performance, and seasonal factors all change over time, so the chosen date matters.
Your business is likely the most valuable asset in your divorce. The valuation attached to it will shape your financial future for years. An attorney who treats this as just another line item on a financial worksheet is not the right fit.
Crouse Erickson has the specific financial knowledge, expert relationships, and courtroom experience to protect what you have built. We have been handling complex business valuation cases in Spokane County for nearly 30 years.
Call (509) 624-1380 today to schedule a confidential consultation. Tell us about your business, and we will walk you through the valuation issues that matter most.
You can also contact us online anytime.
Crouse Erickson | Spokane’s Largest Family Law Firm | (509) 624-1380 | Schedule a Confidential Consultation | 601 W. Main Ave, Suite 1100, Spokane, WA 99201 | Read Client Reviews
