Texas Divorce: Business Division in Divorce
One issue that arises with some frequency in high net worth divorce cases is the division of a closely-held business. In many cases, the parties to a divorce will agree that one party will be awarded 100 percent of the business, with the right to own, operate, and receive funds from the business. The other spouse will, therefore, receive a just amount of other marital property to ensure a just and right division of marital property.
In less frequent cases, the parties may agree to each maintain a percentage of the business, with one or both parties continuing to operate the business after the divorce. Another option that is fairly common is the sale of a business, with each party receiving a portion of the proceeds.
To determine the best course of action, and to protect your property rights in a divorce, it is critical to retain an experienced divorce attorney. At Short▪Carter▪Morris, we have extensive experience in all areas of family law. We are located in Houston, Texas, and are pleased to represent clients throughout Southeast Texas and the Greater Houston Area.
Choosing the Wrong Attorney Can be Costly
When handling a divorce involving a business, it is critical for an attorney to effectively answer key questions. What is the value of the business? How have the husband and wife contributed to the success of the business? What role does personal good will have on the success of the business? Is the business properly classified as community property or separate property?
At Short▪Carter▪Morris, we enlist the aid of forensic accountants and other professionals respected in their fields to find answers to these questions. We consider the short-term and long-term implications of complex property division issues. When handling a case involving a business division, we consider the issues that are most important to the financial protection of our clients, including:
- Lookbacks
- Valuation methodology
- Overcompensation
- Inadequate compensation
- Personal vs. professional goodwill
- Community property vs. separate property issues
- Management and transfer of assets during the divorce process
- Short-term and long-term implications of the asset allocation
If you need quality legal representation for a divorce involving a closely-held business, we encourage you to contact our Houston office for assistance.
Contact Us
To speak with a lawyer at our office in Houston, Texas, call 713-626-3345, or contact us by e-mail.
