W. Tyler Moore, PC

What issues do business owners face in a high value divorce?


Some married couples in Texas are also business partners. They both may have put a lot of hard work into ensuring their business is successful. Oftentimes, a family business is the most valuable asset a couple owns. Therefore, should the couple decide to divorce, they may want to see that they are treated fairly when it comes to property division and the business they have cultivated for years through the sweat of their brow.

When it comes to property division and a family business, a monetary value will need to be placed on the business. It can help to enlist the aid of a valuation expert. The parties should make the business's financial records available to the valuation expert.

The valuation expert may also want to visit the business in-person and talk to those managing the business. Keep in mind that state law varies when it comes to determining how much the business is a marital asset, especially if only one spouse owned the business before they got married. But, both spouses worked in the business afterwards.

It is also important that spouses do not "double dip." Again, while state law varies, in some situations, a judge may decide that a spouse should not be awarded spousal support based on their ex's income and also be awarded a share in the business at the same time. In addition, it is important to ensure that both spouses are not hiding assets when it comes to their business.

Sometimes, unscrupulous spouses may try to say they do not receive much income from the business or that the business has more debts than it truly does to have the upper-hand when it comes to the divorce process. Again, if a neutral valuation expert is consulted, he or she may be able to note these discrepancies, so that the true value of the business can be established.

Obtaining an accurate value of a family business is important when it comes to settling many divorce legal issues. This is especially true in a high value divorce where the business is one of the couple's largest assets. Business owners going through a divorce may want to work not just with a valuation expert, but also an attorney to ensure their rights to the business are protected.

Source: WealthManagement.com, "Three Pressing Issues for Business Owners Going Through a Divorce," Mark S. Gottlieb, Jan. 30, 2018

No Comments

Leave a comment
Comment Information
Email Us For A Response

Contact

Start With A Case Evaluation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Hear From Our Clients

"Grimm Collections utilized Mr. W. Tyler Moore for a very complicated matter of litigation regarding non-payment of freight invoices to one of our clients local to the Houston area. I’ve worked with many attorneys throughout the United States on many litigation matters and the biggest deficiencies are lack of industry knowledge and poor communication/follow up.." - D.M.

Read More
  • Avvo - Rate your Lawyer. Get Free Legal Advice.
  • Avvo Clients' Choice 2012 Lawsuits & Disputes
  • Avvo Rating 10.0 Superb Top Attorney Lawsuits & Disputes
  • Avvo Top contributor 2013 Lawsuits & Disputes
  • AV Preeminent Martindale-Hubbell Lawyer Ratings
  • H Texas Houston's Top Lawyers 2014
  • Lead Counsel Rated Attorney
  • Nation's Premier | NAFLA | Top Ten Ranking 2014
  • Board Certified Texas Board Of Legal Specialization Civil Trial Law Family Law