When business owners in Texas go through a divorce, they may face particular challenges. Many divorces carry serious financial implications that can have far more long-lasting effects than the psychological and practical consequences. However, when one of the assets involved in the divorce is a privately owned business, the situation can become even more complex.
One issue that can frequently arise during property division is a proper valuation of the business’ worth. In some cases, the business may be considered a marital asset. However, one partner might want to keep the business and provide compensation with other assets. In order to determine the company’s value, experts can study financial statements and do a proper appraisal. However, determining the value of a business can be complex and highly disputed, especially in a high-asset divorce. Experts may need to visit facilities and interview management in order to gain a fuller understanding.
In addition, there may be a dispute as to how much of the business’ value is a marital asset. If the business was founded during the marriage, it will generally be considered a marital asset, but if it was launched prior to the wedding, only the appreciation in value during the marriage will be considered an asset. Even if this is the case, properly measuring the appreciation requires obtaining a corporate valuation at the time of the marriage as well as at the time of divorce.
When a business and other valuable assets are involved in a divorce, the financial aspects can be complicated, especially if one partner is seeking to hide assets. A family law attorney can work with a divorcing spouse to protect key assets, disentangle complex finances and achieve a fair settlement on issues of property division and spousal support.