Business Owner Divorce Attorneys in Texas
Valuation and division of a family business, corporation or professional practice during divorce proceedings often leads to complex debates and highly contested issues. It is critical that you obtain legal representation from an experienced family law attorney who can protect your interests and guide negotiations to a reasonable resolution.
At Scott M. Brown & Associates, we complete a comprehensive analysis of the business assets and debts our clients hold. We also closely evaluate the contributions that each of the spouses has made to the business.
- How to Determine if a Business Is Part of the Community or a Separate Entity
- The division of a Texas corporation
With our offices in Angleton and Pearland, Texas, our knowledgeable and proactive business owner divorce attorneys represent clients throughout the Houston area and evaluate business assets whether they are confined to Texas or not.
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How to Determine if a Business Is Part of the Community or a Separate Entity
Unless a party can show otherwise, all property acquired during a marriage in Texas is considered communal property. As with any other piece of property, a company will be deemed community property in the event of divorce unless it is explicitly designated as the distinct property of one spouse. If a business was started before marriage, it is probable that at least some of the business is owned by the business owner alone. As long as one spouse contributed to the growth of a company throughout their marriage, they may be reimbursed by the other spouse’s community property inheritance, even if the business was initially separate property. Furthermore, the categorization or reimbursement claims for a company may be affected if community assets were commingled with the assets of the firm.
What Types of Business Assets Can Be Divided?
Accurate evaluation of the worth of the firm is critical for business owners and executives in divorce proceedings if a company has been found to be community property. A company’s form is the first thing to take into account when attempting to determine its worth since each kind of organization requires a different approach. All of the assets owned by a sole proprietorship are included in the single proprietorship’s worth. While the partnership’s assets are not subject to division in a divorce, a partner’s stake in the partnership is considered marital property and may be divided between the parties in a divorce. Only an individual’s stake in the company may be appraised and split, not the corporation’s assets when the firm is a corporate entity.
Valuation of an enterprise
It’s important to take into account the company’s assets, any real property held by the firm, and its past and prospective profits when determining its value. To figure out how much a company is worth, a variety of techniques are used. Comparable sales are used to determine a company’s alleged market worth by comparing the sales of similar firms. Debt and liabilities are subtracted from assets to arrive at the book value of a corporation.
It is crucial to know the various ways of determining a company’s worth. There are several valuation methods, but an experienced divorce lawyer can help you go through them all to find the ones that are most appropriate for your company and guarantee that its true worth is appropriately estimated.
The Division of a Texas Corporation
It is important for the parties to decide what will happen to the company after the divorce agreement and paperwork are finalized. It is possible for a couple to keep joint ownership of a company, although doing so is typically discouraged. In many cases, one spouse will be awarded the business and will pay the other a portion of the firm’s worth. It’s also possible to sell the company and divide the profits. No matter what technique is used to divide up a company, it is essential that the business’s worth be precisely estimated before it is split.
Executive Stock, Profit-Sharing Schemes, and Other Assets (Executive)
Executives may not literally own the company they work for, but they may have a stake in the company via stock options, deferred salary, or profit-sharing programs. The first step is to ascertain whether any shares, deferred payment, or other profits are separate or communal property, as is the case with any kind of property. Community property is earned during the marriage, even if the remuneration is not paid until a later date. To ascertain the worth of every remuneration obtained during the marriage, regardless of how it was supplied, you may need to hire a forensic accountant if any communal property has been found. The divorce order or settlement agreement should include how any stock or deferred pay will be handled, as its disbursement is likely to be postponed until the allocation of any executive assets has been settled. It is to your best advantage to employ a competent attorney to help you determine how to share executive income and assets, and to aid you in obtaining a fair distribution of the assets.
Fair Business Valuation And Division | Cost-Effective, Dedicated Advocacy
There are several things to consider with great attention to detail in a business owner’s divorce. First, business assets are often part of the marital estate or community property. They will affect the other agreements of the divorce, including division of property, child support, and spousal support.
We partner with accountants, economists, business valuation experts, real estate appraisers, and other financial experts to ensure that business assets and debts are fairly divided in divorce and separation agreements. We will account for the following in your proceedings:
- Real estate property owned by the business
- Investments and bank accounts
- Physical asset inventory
- Copyrights, trademarks and intellectual property
- Official records and tax returns
- Debts owed by the business and partners
- Retirement accounts
At Scott M. Brown & Associates, we strive to resolve all issues through mediation, arbitration or negotiation, but we are prepared to aggressively protect your best interests and assets in divorce court. We aim for excellence, and our services are completely customized to your unique situation.
Call Scott M. Brown & Associates For Experienced Legal Counsel
If you’re divorcing your business partner, it’s important to work with a divorce lawyer with extensive experience to provide you legal assistance in determining each spouse’s share in the firm and divide its worth or assets fairly. Attorneys at Scott M. Brown & Associates are familiar with divorce cases involving company owners or executives, and they can assist to ensure that you recover any assets that are legally yours.
We understand there is a lot at stake both personally and professionally. Speak with one of our experienced divorce mediators today or contact us by email to discuss your divorce case and our family law services.