In California family law, business valuation is the process of determining the [[Fair Market Value|fair market value]] of a business owned by one or both spouses during a divorce. The value of the business is considered part of the [[Community Property|community property]] that will be divided between the spouses. The valuation is typically conducted by a professional [[appraiser]] who assesses the financial statements, assets, liabilities, and other relevant factors to determine the value of the business. The appraiser's report may be used as evidence in court to support the parties' positions in negotiations or litigation. The specific methodology used for valuation may vary depending on the type of business, its industry, and other factors. There are various approaches to determining the value of a business. For example, "[[Asset Approach]]," "[[Income Approach]]," "[[Market Approach]]," and "[[Excess Earnings Approach]]."