The Steps for Ensuring an Accurate Valuation | How It Can Benefit Everyone
The importance of accurately determining the value of business interests in a Texas divorce can not be overstated. Though Texas law follows the community property approach, with all marital assets being divided equally between the spouses, allocating business interests can often be intangible. More often than not, one spouse will essentially buy out the other spouse’s interest in the business. For the sake of both parties, it’s essential that the true value of the business be calculated.
Business Owners More Likely to Face Divorce
Statistics consistently show that entrepreneurs have a higher divorce rate. Experts cite many reasons for this:
- The long hours typically spent working by business owners
- The financial instability that often comes with starting your own business
- The personality type most commonly associated with entrepreneurs, which can be aggressive, obsessive and self-possessed
The Importance of Accurately Valuing a Business Interest in a Texas Divorce
Correctly determining the current market value of a business can be critical for both parties to a Texas divorce:
- It promotes a fair division of the debts and assets of the marriage
- It will often be used to help determine whether spousal support is warranted and, if so, how much should be paid. An inaccurate valuation may result in too much or too little support being paid.
- It promotes long-term financial security for both parties, thereby helping avoid future conflicts
The Steps for Accurately Valuing a Business Interest in Texas
Ensuring that you’ve correctly determined the value of a business interest starts with hiring a proven and qualified business valuation specialist. Next, you’ll gather all financial records related to the business. The specialist will then assess the current and future market value of the business, looking at assets, liabilities, goodwill and potential for growth.
Contact DTX Family Law for Guidance in a Texas Divorce
At DTX Family Law, we always give top priority to the needs and best interests of our clients. We know that the legal process can be complex and confusing, and we’ll carefully explain your rights and options, as well as your chances of success, so that you can make good decisions for you and your family. Chrysandra is board-certified by the Texas Board of Legal Specialization, an honor earned by less than one of every ten family law attorneys in the state. To schedule an appointment with a proven and effective Texas family lawyer, visit our website or call our offices at 940-566-0606. We can help you determine whether an agreement incident to divorce is in your best interests and can draft one for you, if necessary.
Handling Divorce and Family Law Matters throughout Denton and the surrounding communities, including Denton, Collin, Wise, Tarrant and Cooke counties, as well as the cities of Flower Mound, Highland Village, Bartonville, Lake Dallas, Corinth, Frisco, Northlake, Trophy Club, Haslet, Justin, Ponder, Coppell, The Colony, Lantana, Argyle, Roanoke, Copper Canyon, Hickory Creek, Lewisville, Little Elm, McKinney, Allen, Princeton, Anna, Lavon, Melissa, Parker, Lavon, Westminster and Weston