My two cents for what it's worth. I'll only comment minimally as this is a complicated issue.
Profit and loss statements, bank statements, by laws and a valuation will be key.
We were supposed to have a "neutral" third party evaluate the business. He portrayed that the valuation was for a divorce instead of to sell. He made it seem as though the "neutral" party represented him alone. My attorney had to define the guidelines, and that he represented us both equally. Turns out my ex was the one that hired the guy instead of the attorneys. First red flag.
Once we got the man that was making the valuation on board, my ex was the only one with access the the documents provided. This was probably not in my best interests, as I he controlled the flow of information. We were in the middle of an offer for purchase, and I strongly believe that the numbers weren't accurate.
The valuation was on the lower side. Many red flags with the numbers. I hired a CPA to look at the numbers and there were many issues she brought up. We didn't have time to dispute it all unless I wanted to pay $6000+ for a separate valuation. His Quickbooks didn't appear to match his Misc expenses etc. He had put in "fuel" in QB to the tune of $330k but about 70% of those charges were actually checks to people. We never determined if it was horrid QB records or actually him fudging the books to show less profit. We never got to see the taxes for the business for the current years. He never produced many of the documents and had two different attorneys.
It cost me $1800 to get nothing noteworthy, as we didn't have time to get the business valued again. I didn't have money to hire a forensic accountant or he'd have been screwed. I had to pay my own attorney fees. We weren't married for 23 years, so not eligible for that part.
He had another business partner that was in theory being "bought out", but he took him off the paperwork illegally, and had been paying him a settlement amount monthly. His ownership was disputed but since he never filed any legal paperwork, the other owner surfaced during our divorce. He was given his ownership, which was deducted from my settlement. I suspect he figured out what my ex had done and threatened to sue him. He had taken an extended break from being in the business.
Needless to say this was a cluster fuck of trouble. I knew where the skeletons were, and I pointed them all out. I'd always stayed out of his business due to the way he ran things. I was squeaky clean.
I spent $25k plus on the divorce. I spent $1800+ on the accountant. I got a six figure settlement, the paid off house, and a bunch of other things. He didn't fare so well in the end.
He then sued me for millions and that cost me $10k more in legal fees. The case was dismissed with prejudice in Federal Court. He didn't win that either, but it cost me my savings.
Just know it will be tedious, expensive and exhausting. Concentrate on the big things, and the things that will net you money. Know where the line in the sand is for how much you're willing to spend, and make sure it's in line with what you stand to gain.
[This message edited by Muggle at 8:20 PM, July 4th (Saturday)]