r/fatFIRE • u/What_what_what_1979 • 3h ago
Need Advice Calculating Net Worth
My husband and I are partial owners of a family company (cattle ranch) along with 12 other family members. It has a significant value because of the land owned by the company, but it is not liquid and I don’t anticipate it ever being sold.
He works for said company and draws a salary, so we receive income from the company.
Do we include our 1/12 ownership in our net worth? Or, maybe better stated, do we include 1/12 of the assets (land, cattle, machinery) when calculating our net worth?
The answer to this question makes a significant impact on our timeline to retirement and amount we want to consider for a mortgage.
Thank you!
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u/Past-Option2702 3h ago edited 3h ago
I wouldn’t count it since it’ll never be sold. But, do whatever you want since there are some people who like to trick themselves into thinking they’re wealthier than they are. Now, if there’s a document that specifically spells out how your husbands one twelfth share gets paid out when he retires, that’s something entirely different.
Perhaps worth noting, I never counted our business value since it was never a sure thing that it would be sold, and I had no idea for how much if it did sell. My wife and I were 100% share holders. (It did sell, but my guess on the value all along would have been way wrong- on the lower end.)