Owner compensation can affect both support analysis and the value of a closely held business in marital dissolution. When an earnings-based valuation is used, compensation adjustments may affect the result. Counsel and the valuation expert should coordinate the treatment of compensation, business income and support under the governing law, including any applicable double-counting rules. Grahall’s compensation analysis supplies an economic input; it does not determine the legal treatment of property or support.
When counsel retain us
We are engaged by counsel on either side, and by agreement as a jointly retained neutral — quantifying the reasonable compensation for the owner’s actual roles so the valuation expert, the support analysis, and the court work from a defensible number rather than a self-reported one.
How the opinion is built
Owner-executives in closely held businesses rarely hold one job; they hold several. Our composite analysis prices each role the owner actually performs against market survey data, producing a supportable earnings figure independent of what the owner chose to pay themselves — a distinction that matters enormously when reported W-2 income was set with taxes, not divorce, in mind.
If this question is live in a matter you are handling, request a conflicts check — an initial conversation costs nothing and quickly clarifies whether an independent compensation expert strengthens your case. Our methodology and engagement structures pages explain how we work.
Related: where owner compensation affects an earnings-based valuation, a documented compensation study can help the valuation expert explain any adjustment. Counsel can review engagement mechanics on our For Attorneys page.
This material is general educational information, not legal or tax advice for a particular matter. Requirements vary by jurisdiction and can change. Counsel and tax advisers should verify the governing rules. No tax treatment, privilege, admissibility or case outcome is guaranteed. An inquiry does not create an engagement.