When marriage partners in Texas are also business partners, changes in their personal relationships can also have an impact on their businesses. Filing for a divorce under such circumstances will require careful planning to work toward an outcome in which property division is equitable. All of this should preferably happen without affecting the business operations — a mission not easily achieved.
The divorcing couple has some options to consider and discuss. They can continue to work together as business partners, or they can sell the business and divide the proceeds between them. Another option is for one spouse to maintain ownership of the company and compensate the other spouse for half the value of it. This can be done by giving the other party equity in the family home or another asset.
Regardless of the route the couple decides to take, determining an accurate value for the business will be vital. This might be best done by a professional appraiser because business owners often do not have an exact idea of the value of their own companies. Also, the company’s accountant may not be the ideal person to do the appraisal. Accountants focus on existing numbers related to past performance, while the future earning potential plays an important part in the value of a business.
Any Texas business owner who is considering filing for divorce from a spouse who is also a business partner may benefit from a consultation with an experienced divorce attorney. A skilled lawyer who is seasoned in navigating divorces that involve business assets will likely have the resources available to have professional appraisals done. With such support and guidance, the divorce may have a minimum impact on the business operations while also ensuring the client receives his or her equitable share of the business.
Source: divorce.lovetoknow.com, “Divorce and Business Valuation“, Jodee Redmond, Oct. 21, 2016