Where Hard Cases Are Handled! (469) 935-4600
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Business Owner Divorce Lawyers in Frisco, TX Collin & Denton
What to Know About Divorce and Business Ownership
For business owners, divorce can be a complicated and messy process. Not only are you dealing with the emotional stress of ending a marriage, but you also have to figure out what to do with the shared business. Who will get ownership? How will the business be valued? And what if you can’t come to an agreement with your soon-to-be ex-spouse?
These are all valid questions that need to be addressed before moving forward with a divorce. The Collin & Denton County divorce lawyers at Ridgely Davis in Frisco Texas are ready to discuss the different aspects of divorce and business ownership, so you can be as prepared as possible for what lies ahead.
Understanding the impact of a divorce on a Business asset
The first thing to understand is that your divorce will proceed differently depending on your connection to the business. If you are the owner of the business and the business was acquired during the marriage, the business will be considered Community Property and subject to some form of division, or at least, your spouse will be entitled to a portion of the value of the business.
One of the first things you’ll almost certainly need to do is have your business valued and this usually is based on 1 of 3 methods for valuing a business which are discussed below. Ultimately, the goal is for the business evaluation to help determine how to fairly divide the business between you and your spouse. Once you have a business valuation, it’s a matter of negotiating the division of the entire marital estate taking into consideration the value of the business. If for whatever reason, you or your spouse doesn’t agree with the value determined by the expert, it will likely be necessary to retain another expert to contradict the original business evaluator’s conclusions. Either way, if you and your spouse are unable to come to an agreement on how to divide the business, the court may need to get involved. In some cases, the court may order the business to be sold and the proceeds split between the two of you. Other times, one spouse may be given sole ownership of the business. Whatever the outcome, it’s important to work with experienced Divorce Lawyers like those at Ridgely Davis Law who have the experience needed with Business Owner Divorces in Collin, Denton and Surrounding Counties to ensure that your business interests are protected during your divorce.
Schedule a Free Case Evaluation with an Experienced Business Owner Divorce Lawyer in Frisco, TX serving Collin, Dallas, Denton and surrounding Counties. (469) 935-4600
Take the first Step
Are you facing a divorce in which you or your spouse owns a business? If so, it is crucial that you consult and retain an experienced Divorce Lawyer knowledgeable in handling divorce involving a business. Our Business Owner Divorce Lawyers at Ridgely Davis can help guide you through this complex process. Tell us about your case to learn how our Business Owner Divorce Lawyers serving Collin, Dallas, Denton, and surrounding counties can help.
Over 35 Years Combined Legal Experience
3 Methods to Business Valuation
The Asset Approach
The Asset Approach is a way to figure out how much a company is worth. You look at all of the company’s assets and subtract the company’s liabilities. This tells you how much the company is worth. This can be used along with other methods to get a more complete value for a company.
The Market Approach
In this approach, the business evaluator compares the business to other businesses that are similar. This can be tricky if there aren’t many businesses like it or if it’s a really special kind of business.
The Income Approach
The income Approach for valuing a Texas Business is based on the cashflow and profits of a business. This is usually accomplished by one of two methods: the capitalization of earnings method and the discounted cash flow method. The capitalization of earnings method is when you divide the benefits a company will give over time by how much someone would expect to get back for investing in it. The discounted cash flow method is when you apply a discount rate to future benefits that a company is expected to give. Business valuations are tricky, because they require making lots of guesses about the future. That’s why it’s important to have an experienced business owner divorce lawyer on your side who knows what they’re doing. At Ridgely Davis, in Frisco, Texas, our divorce lawyers can help you get through your divorce involving a business entity successfully. Give us a call today!
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