Divorces are complicated processes, particularly if you also own a business. If you are considering filing for divorce, you may benefit greatly from having expert insights into managing business valuations in Houston.
Expert Insights Into Managing Business Valuations in Houston Divorces
If you are looking for expert insights into managing a business valuation in your divorce, a Houston business valuations lawyer can help.
In 2021, Texas had an overall divorce rate of 1.4 per 1,000 people. This makes it one of the three states with the lowest divorce rate in the United States. The overall number of divorces in the United States has also declined from 2012 to 2022.
Still, despite its lack of divorces, there are still individuals undergoing the same experience as you, and while the divorce process can already prove to be incredibly complex, it may become more so when you factor in business ownership.
Determining Ownership and Understanding the Difference Between Marital and Separate Property
Property division is one of the key aspects of any divorce case, but especially when there is business ownership involved. You will need to determine whether your business is considered shared property or separate property.
Simply put, community property includes any property, assets, and/or debts that you acquired during your marriage. If you started a business with your spouse during your marriage or acquired a share in one, it is considered community property and therefore does not strictly belong to one person. While Texas is not a 50/50 divorce state, the court still seeks to divide the property equitably.
If you or your spouse owned the business prior to your marriage or have outlined it in either a prenuptial or post-nuptial agreement, full ownership will most likely be granted to the determined owner. Factors such as when the business was founded, how it was funded, and how it operated can also determine its categorization, impacting who will be granted ownership and/or profit. Value increases will also be factored into the final division decision.
An Overview of Valuation Approaches and Methods
A common business valuation process used in divorce proceedings tends to include the following:
- Asset approach: Evaluates the current market value of all business assets, tangible and intangible.
- Income approach: Focuses on the business’s potential for future income, considering historical earnings and projected performance.
- Market approach: Compares the business to similar businesses that have recently been sold to determine its market value.
This typical approach tends to depend significantly on the nature of your business and the financial data you can provide. Texas courts also tend to recognize personal goodwill, which is linked to an individual’s skills and/or reputation. Typically, this is not classified as divisible property in a divorce, unlike business goodwill.
While the business valuation process may feel overwhelming, you may benefit from enlisting the guidance and insight of a business valuation lawyer.
Hire a Business Valuations Lawyer
When you hire a business valuations lawyer, you are not only getting a wealth of knowledge but also a guide who can walk you through every step of your business valuations process. The business valuation process can easily become confusing due to complex ownership structures, intellectual property considerations, fluctuating market conditions, and the potential for one party to try to undervalue the business.
Fortunately, with the help of a business valuations lawyer, you will not need to stumble through a confusing and temperamental process. Instead, you can place your trust and your future in the hands of the Stange Law Firm.
Why You Should Hire the Stange Law Firm
The Stange Law Firm is large enough to have multiple locations in many different states, yet we still manage to provide the intimate and personalized care of much smaller firms. With plenty of positive testimonials from our satisfied customers, it is easy to see how much we care about our clients.
Our lawyers are prepared to go to bat for you and your future, utilizing our expansive knowledge and boundless drive to help you pursue your desired outcomes. Not only do we focus on business valuations, but our understanding of the divorce process allows our team to serve as a strong ally as you navigate the process.
FAQs
How Much Does It Cost to Hire a Divorce Business Valuation Lawyer in Texas?
In Texas, the overall cost of hiring a divorce business valuation lawyer tends to vary case by case, often being influenced by the amount of time and complexity your case requires. At the Stange Law Firm, we work hard to help you achieve your desired outcomes, making every cent and second you spend feel worthwhile as you pursue your future goals.
Is Hiring a Business Valuation Lawyer Worthwhile in Texas?
After putting so much time, money, and effort into your business, it would be incredibly disappointing if you were to lose it all. Hiring a business valuation lawyer in Texas may be exactly what your case needs to succeed. While each can be unique, many individuals have found that enlisting the assistance of a lawyer can prove to be deeply helpful, bringing clarity to a confusing and often overwhelming process.
Is Texas a 50/50 Property Division State When It Comes to Divorce?
The 50/50 rule has been enacted in several different states, guaranteeing that each spouse will be granted equal halves of any marital/community property (barring certain circumstances). When it comes to divorce in Texas, however, it is not a 50/50 state. Instead, legal officials strive to divide joint property equitably, factoring in variables beyond whether property and debts were acquired during a couple’s marriage.
How Long Will My Business Valuation Process Take to Resolve in Texas?
Each business valuation case is unique, and it is common for the schedule of these cases to mirror that fact. The level of complexity presented by your case often has a significant impact on the amount of time your case requires, but there are also outside factors that may lengthen the overall duration of the process. One way you can help your timeline is by hiring a business valuation lawyer, who can protect you from missteps that could lead to setbacks.
Texas Business Valuations Lawyer
Owning a business is one of those life accomplishments that many use as a measure of success. It is particularly meaningful when that success is shared by those close to you. Unfortunately, not all good things last forever, and protecting your business is important when faced with personal difficulties. Contact the Stange Law Firm today to schedule a consultation and learn how to protect the value of your business.
