Are you planning to get a divorce? If you own a small business, you will have special needs during your divorce. It is important to be familiar with the potential problems that could arise during your divorce proceeding.
The small business divorce lawyers at The Vendt Law Firm, P.L.L.C. can walk you through your divorce from start to finish, working tirelessly to protect both your personal well-being and your business.
Texas is a community property state. This means most property and assets acquired during the marriage are considered owned by both spouses and subject to a division that is considered “just and right.” It is likely that at least a portion of the value of your business is considered a marital asset and, in turn, community property. How much of your business is community property depends on whether you created and developed your business during the course of your marriage or before.
According to Texas law, if your business was founded before your marriage, or it was founded using “separate funds” — that is, funds that predated the marriage and that one spouse acquired through inheritance or a gift — then the business itself is considered separately owned. However, this does not mean that there isn’t a community property aspect to the business that must be dealt with during the divorce.
As a business owner, one of the first things to do when determining the divisibility of the business is to speak to a business appraiser. A business appraiser will take a comprehensive look at the business, including financial statements and tax returns. In addition, the appraiser will consider intangible assets, such as the “goodwill value” of the company. There are two types of goodwill, in terms of business valuation: professional goodwill, which is how much the reputation of the business owner contributes to the success of the company and is considered separate; and the enterprise goodwill, which is the reputation of the business itself, and is considered divisible as community property. The appraiser will also consider the assets and liabilities of the business, the profits, and what similar businesses in the region have sold for when determining the business’ value.
Once a value is determined, an experienced divorce lawyer can help you to consider how much of that value is community property and, when considered along with other assets that must be divided in the divorce, what a right and just division might be.
Getting a divorce does not necessarily mean you have to sell your business. Texas does not require splitting marital property right down the middle, but rather to split it in a way that is “just and right” for both parties. There are a number of options for dividing marital property in a way that is equitable yet still allows the business to be retained and continue operating.
There are three common ways that the value of a business can be divided in divorce:
Determining how your divorce impacts your business and how to separate it in a fair and equitable way calls for an open mind, legal experience, and some creativity. An attorney from The Vendt Law Firm, P.L.L.C., can help you explore all of the options that are available to you and provide the guidance you need to protect your property rights, ensure that you receive your fair share, and avoid legal loose ends that can cause problems in the future.
Frank has done an amazing job with my divorce case, I would definitely recommend him to anyone!
“Frank has done an amazing job with my divorce case, I would definitely recommend him to anyone! He has always been available at all times of day, he is very sharp and knows exactly what he’s talking about and can explain things very well. I have relied on Frank to take care of this case and he has come through on top at every turn. Excellent lawyer.”
Frank guided me through a very challenging divorce and I couldn’t be more pleased.
“I cannot recommend Mr. Vendt and his associates more! Frank guided me through a very challenging divorce and I couldn’t be more pleased. Response times on phone and email were exceptional. On the rare occasion my questions were not answered immediately, I would wait only hours at the most, thankfully, I never waited into the next day. Frank also made a surprising effort to fully understand my situation, and negotiate a fair deal. Although it meant less money in his pocket, he managed to avoid a second trial, and negotiated a fair deal I was very pleased with. I always assumed lawyers were in it for all they could get, but Frank truly had my best interest at the forefront of his efforts. The best quality I can mention is that Frank is very honest and strait forward. He reads the situation, and advises in a very clear and accurate manor. I never felt like I was in limbo, and with Frank on my side, I knew what to do and what to expect to reach a satisfying conclusion to a difficult time in my life. I hope and pray I never need his service again, but if I do require a family attorney in the future, The Vendt Law firm will receive my first and only call.”
Frank really took care of me with a complex divorce. It was nice to know I had him in my corner with his experience and understanding during a difficult time.
“Frank really took care of me with a complex divorce. It was nice to know I had him in my corner with his experience and understanding during a difficult time. I highly recommend. ”
I simply want to Thank Frank for his upfront honesty and advise on my case! He saved me from spending my money and gave me the knowledge I needed to go about my situation.
“I simply want to Thank Frank for his upfront honesty and advise on my case! He saved me from spending my money and gave me the knowledge I needed to go about my situation.Thank you You Frank i really appreciate you taking your time to help me out and providing me with options..I hope to never have to go through going to court but if it was the case i would defiantly hire Mr Frank!”
He represented me in a manner that was professional and very efficient. Frank does what he does because he has a passion for justice.
“Frank was great to work with. He represented me in a manner that was professional and very efficient. Frank does what he does because he has a passion for justice. I am very appreciative of all that Frank has done for me and I will recommend him to anyone that needs legal representation conducted the ‘right’ way.”