When it comes to the topic of divorce people’s first thoughts often go to things like: How will it effect the children? Who will get the house and the cars? How much am I going to have to pay in child and/or spousal support? Will I have to part with half of my stock portfolio?
In a Texas divorce, there are several issues that are unique to considering a business as an asset in the property division. The normal property division issues of identification, characterization, valuation, and division each have intricacies for businesses that need to be considered.
Addressing the type of entity (corporation, partnership, sole proprietorship) is important because…
Most business valuations in the divorce context are performed upon long-standing businesses. Valuing an early-stage start-up company poses some challenges. In 2013 the AICPA released a guide detailing a framework for assessing the six typical stages of a business’ lifecycle.
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Because business entities are often a large part of a marital estate for divorce, family lawyers and clients should understand how to review the report and spot issues even before hiring or relying upon the party’s own expert for review.
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Often in divorces, a spouse or both spouses may own a closely-held business. While the business itself may not be divisible in the divorce, the value of the business entity as an asset of the marital estate can be an important component to the division. There are several considerations at play when valuing a business entity for divorce purposes.
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Did you know that businesses with fewer than 500 employees account for over 99% of all employer firms in the U.S.? And, very small businesses with fewer than 20 employees account for half of the country’s nonfarm GDP and have generated 60-80% of the net new jobs over the past decade?
For the entrepreneur of…
When the parties to a divorce own a small business, a Texas divorce can have a deeper and more difficult effect. Not only are the emotions high due to the breakup of the relationship, but also one spouse or both spouses may be concerned about their future livelihood after the divorce because of the division…
January is the month of renewal – closing the door on the negativity of the prior year and planning for the challenges of the new year. Many commit to weight loss, exercise, or stopping smoking at the start of a new year as an opportunity to make improvements in their lives. On the other hand, some people use the beginning of a new year to make new personal beginnings, such as ending their marriage.
Continue Reading Divorce in the New Year Protecting Your Business
The Harold Hamm divorce in Oklahoma is getting a lot of media attention right now. The divorce trial has started and the wife is making allegations that the husband’s company is rewriting history to downplay his role in the company’s success in order to increase the value of the marital estate subject to division. The …
I was asked recently about whether becoming a partner in a professional company creates community or separate property. The Husband worked for a firm prior to marriage and shortly before the marriage was offered a partnership interest in the firm. He and the firm signed the partnership agreement a few months prior to the marriage. After the marriage, he began receiving the benefits of the partnership agreement. Now, he and his wife are headed for divorce and he wonders if she is going to be entitled to part of his partnership interest.
Continue Reading Becoming a Partner — Ownership Interest in Divorce