In many partnerships, corporations and limited liability companies, a team of people has worked together to build a business over time. Owners have a sense of pride in what they have created. Business divorce is used to describe the process of dissolving a business and distribution of assets to go separate ways when fundamental disagreements arise between owners.
Because those involved may have worked together for 10, 20 or 30 years and often have strong personalities, negotiations can be difficult. Spouses, children and other relatives may be involved in running the business. The breakup of a business can become an emotionally taxing time. It can become as stressful as dissolution of a long-term marriage, especially if the parties have worked together daily for years, relying on each other for advice and encouragement in the face of business pressures.
From our Houston law office, W. Tyler Moore, PC, has assisted many Texas clients with business dissolution. With more than 40 years of experience and certification as a specialist in civil trial law, our attorney can protect your rights throughout the process.
What are the first steps in the business dissolution process? A well-qualified valuation is important to be able to develop a strategy to maximize value for the ownership interest. The next steps vary based on your particular circumstances. For example, with a partnership, it is important to resolve capital accounts.
Meet with a business lawyer as soon as possible to discuss concerns. This is the best way to anticipate and plan how to address potential issues. It is often impossible to undo mistakes that might occur while trying to handle the dissolution.
For business owners going through a divorce, it is crucial to seek legal advice about how the divorce could affect business interests. If a soon-to-be ex-spouse was closely involved in running the business, it may be necessary to look at a buyout or sale. Quite often these businesses will have buy-sell provisions in the ownership agreement in the event of death or divorce of one of the primary owners.
Please send us a message or call 713-322-3950 to schedule a consultation with W. Tyler Moore. Once we understand the circumstances and your goals, we can formulate a legal strategy designed to meet your needs.