W. Tyler Moore, PC

Divorce involving closely held corporation

Occasionally, a marital estate will involve a successful closely held corporation.  The corporation may have extensive agreements with commercial lenders which require continued management by a key individual, continued ownership by a key individual, and continued control though voting rights by a key individual.  When that type divorce arises, you will need a family lawyer and likely a corporate type lawyer to familarize you with the lender's requirements.  After all, the goal is NOT to destroy the company by ruining its relationship with its bankers.  The goal is to protect the assets so they continue to exist and provide value to the divorcing spouses.

Recently, I was involved in such a case. It was most helpful that both spouses wanted the business to continue and grow from the point of view of the spouse actually running the business and to furnish a stream of income for the other spouse.  Documents involving voting rights, transfer of shares, contractual obligations to pay the other spouse, security for the contractual obligations to pay the other spouse were all required in addition to the usual Marital Settlement Agreement and Divorce Decree.  

Valuation of the going business may or may not be necessary. There are experts, both valuation experts and C.P.A.s, who can shed light on the value of the going concern.  Keep in mind, the winding up or dissolution value of the business is nowhere near its value were it to continue.  Keep an open mind.  Hire a good lawyer and rely on his/her advice to help you through the "corporate divorce."

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