A Business Valuation and Your Divorce
Nearly every divorce is complicated, but one thing that can make it more so is if you own a business. If you and/or your spouse do own a business, it is almost certain that you will need a business valuation in order to help ensure that your financial rights are protected and that you receive an equitable division of your marital assets.
A Note about the Division of Your Marital Property
Marital property refers to those assets that you and your spouse acquired together during the course of your married life. This is regardless of who made the purchase or of whose name is on the title. In the event of a divorce in Texas, this marital property will be divided equitably, which means fairly in relation to the circumstances involved. Those assets that you brought into the marriage with you and that you kept separate throughout will remain your separate property and will follow you into divorce. This, however, is where things tend to become complicated when it comes to business ownership.
Yours, Mine, and Ours
If the business in question is one that you started together during the course of your marriage, it is likely marital property that you will need to divide equitably (in one way or another) upon divorce. If, however, one of you brought the business into the marriage with you, there can be a variety of complicating factors involved, including:
If the business has increased in value – as going concerns are wont to do – this increase in value is likely marital property.
If the non-owner spouse worked for and helped grow the business during your marriage, it can make it more difficult to maintain the business’s separate nature.
If marital funds went into growing the business, it could transform the business into marital property.
If the business owner among you ran the business but failed to pay himself or herself a reasonable wage, the attendant drain on the marital finances can also cast doubt on the separate nature of the business.
Things only become more complicated from here, and you are well-advised to have an experienced Fort Hood divorce attorney in your corner.
Your Business Valuation
When it comes to business ownership and divorce, things can become very complicated very quickly, and one of the most important tools at your disposal is having a solid business valuation that deftly demonstrates the business’s value from a variety of perspectives, including projected earnings into the future. Splitting a business down the middle is rarely a viable option, which means you will need to demonstrate the business’s holistic value in relation to the division of your marital property, which is often an arduous and exacting task that can only be accomplished with a credible business valuation.
Discuss Your Case with an Experienced Fort Hood Divorce Attorney Today
If you are facing a divorce involving a business, Brett Pritchard at The Law Office of Brett H. Pritchard in Fort Hood, Texas, is an accomplished divorce attorney who is well-positioned to skillfully advocate for divorce terms that protect your financial rights. To learn more, please do not wait to contact or call us at 254-501-4040 today.