If you are facing divorce, you probably have serious concerns about what this process will mean for your financial future. The implications of divorce are serious, and you know it is important to secure a fair financial settlement. This is especially important for Texas business owners.
A family-owned business is one of the most financially complex assets to address in a divorce. There is often significant disagreement over how the two parties should share business assets, whether they should sell or whether one party should buy out the other. One of the most important steps in this process is the business valuation process – this is the first step in determining the division of business-related assets.
The business valuation process
In order to appropriately divide business assets in divorce, it's important to know what the company is really worth. Whether you and your soon-to-be-ex-spouse are going to negotiate an agreement out of court or your case will appear before a judge, you will probably have to have an expert conduct an appraisal and valuation of your business.
The valuation process involves more than just deciding how much the overall company is worth or the value of specific assets owned by the business. There are several things that could impact how much your business is worth, and you would be wise not to overlook the following:
- The value of trademarks and company branding
- How much outstanding and ongoing contracts are worth
- Important proprietary information and customer lists
- The value of secret processes and company procedures
- The monetary worth of patents and patent applications
- The timing of upcoming contract renewals or new contract negotiations
- The amount of outstanding company debt
- Whether the business taxes have been properly and timely paid
These are all things that are important to your company, but it's not always easy to determine exactly how much these things are worth. When addressing business assets in a divorce, it is prudent to be thoughtful, careful and mindful of the future impact of any choices you make. You may need a business valuation expert to assist you.
Experienced guidance from the beginning
In a financially complex divorce, you will find it beneficial to have experienced, knowledgeable guidance from the beginning. When you have an experienced Board-certified family law attorney in Collin County, Denton County, Dallas County, Midland County, Ector County or elsewhere throughout Texas working with you, you will be able to make choices that make sense now and set you up for success in the future.
A divorce does not have to mean the end of your business. However, you will want to proceed with the goal of a strong post-divorce future in mind. Before you make any decisions or agree to any terms, you will find it helpful to start with a complete evaluation of your case.