Since divorce valuation generally does not contemplate a sale on which the seller will be
subject to capital gains taxes, there should be no reduction for capital gains taxes. If business continues in operation under the ownership and control of the current owner, not only will there be no capital gains taxes, but the value of the business must generally be calculated at the investment value in the hands of the current owner. The investment value in the hands of the current owner rarely considers discounts for marketability or minority interest. Of course, there are some exceptions. If there is a contemplated sale, or a court-ordered sale to a third party, a reduction for various discounts and capital gains taxes may be appropriate.
Each situation is different. Consult a Certified Valuation Analyst for answers— contact us for a free consultation if you need help.