The division of marital assets is a complicated process when dealing with divorce. Both parties have vested interests in the family real estate, home appliances, cars, and business. Hence, your ownership interests in the company or practice are a concern that we at Bolton Law fight for when representing you in a divorce case. The extent of the division is subject to community property principles unless there was a premarital or post-marital agreement signed stating each spouse’s interests in the business.
It is best to consult an experienced divorce attorney if you and your spouse own a business and are dissolving your marriage. At Bolton Law, our accomplished The Woodlands business valuation lawyer will aggressively represent you, fighting for your rights and interests to ensure you retain your portion of the company’s assets and ownership.
Call us at (281) 502-4931 or visit our offices in The Woodlands, Texas, to speak to a reputable and experienced business valuation lawyer and learn more about how we can help.
What Is a Business Valuation Lawyer?
It is wise to consider the legal requirements when valuating a property. The process often seeks to price the property which can be private real estate, businesses, or intellectual properties like trademarks, patents, and copyrights. The process has numerous elements with significant legal implications that demand a valuation attorney’s involvement to ensure everything is done according to the law.
What Does a Business Valuation Lawyer Do?
Success in ensuring you retain what is yours depends on having committed legal counsel when dissolving your marriage. The business valuation lawyer fighting for your rights and interests in the divorce process will focus on the following three principal business valuation approaches:
- The Income Approach: where we will analyze the business’s future earning potential when determining its worth. The strategy is based on the company’s cash flow for the conversion of prospective future profits into current market value, considering potential risks of failure.
- The Assets Approach: where our valuation lawyer will add all the company’s assets and liabilities (tangible and intangible property) to determine its value. The liabilities are deducted from the assets, and the difference is equally shared between you and your partner.
- The Market Approach: where the primary focus is to determine the business’s sale price based on similar companies that have been sold. We will employ the fair market valuation principles while also considering other essential factors like the company’s role in the community and customer relationship. It is an approach we will consider if you and your spouse choose to sell the business after dissolving your marriage.
Sometimes, we will include non-financial considerations like the brand name and the company’s location to determine the business’ value because they significantly influence its growth and success.
What Types of Information Will Be Looked at to Determine Value?
The valuation is based on different essential information that we will review with the help of an expert. We work closely with a business consultant who will assess the company’s books and assets and examine the industry/market and other elements to determine the following:
- What the Business Owns: Reviewing the business assets like equipment, machinery, inventory, and intangible assets like trademarks, patents, shares, and goodwill; to determine their individual and collective value.
- What the Business Owes: We will identify the business liabilities to understand their significance and ensure that you and your spouse share the resulting responsibility as you dissolve the marriage.
- Profitability of the Business: In the same regard, we also will assess the company’s profitability by deducting all its current and future expenses from its present and prospective future income to ensure all parties get their rightful share.
What Are Some Important Considerations For a Business Owner During a Divorce?
It is best to plan accordingly and think ahead when separating from your spouse and you co-own a business or several of them. It is prudent for you as an owner to determine if the ownership interest exclusively or partly qualifies as marital assets. Consider working with an experienced valuation lawyer to help you retain your interest in the business after finalizing the divorce.
Our reputable The Woodlands business valuation lawyer will consider the following when fighting for your rights and interests:
Community vs. Separate Property
If the company’s ownership qualifies as marital (community) property, it is subject to equitable distribution between the co-owners as they part ways. Conversely, suppose the ownership qualifies it as separate property, meaning one spouse obtained it before marriage. In that case, we shall consider other prevailing circumstances like your role in the business’s growth and success after your marriage.
Prenuptial or Mid-Marriage Agreement
It is vital that you consult an experienced business valuation lawyer whether you signed a postnuptial (mid-marriage agreement) or a prenuptial agreement, and you have concerns regarding your interests in the marital property as you dissolve your marriage. Our highly experienced The Woodlands business valuation lawyer will analyze the agreement to find any elements that could be used to secure your interests.
Your Spouse’s Involvement or Contributions
Were you and your spouse directly involved in the business and shared family responsibilities, or did each have individual roles? If you took an active part in starting or growing the business, it potentially gives you a claim to a portion of the company’s shares or ownership in the divorce settlement.
Growth During Your Marriage and Separation
Did your partner own the business before you married, and did it expand after tying the knot or even after separation? Answering this question will be essential to determine if you qualify to claim a portion of the marital property depending on your role in the company’s growth while you were married.
The business’s reputation, location, property size, account receivables, debts, liabilities, intellectual property, and more will be considered when reaching an accurate and fair valuation and ensuring each spouse gets their rightful portion in the settlement.
Do I Need a Business Valuation Lawyer?
Working with a business valuation lawyer ensures you have expert help when you need assistance with business valuation issues during a divorce. The lawyer offers legal counsel when determining how best to conduct the valuation and ensures you obtain accurate results when fighting to protect yourself from potential economic losses when nullifying your marriage and sharing marital property.
Get in touch with Bolton Law if you want a top-notch family law specialist to oversee your divorce and ensure you retain your interests in the marital property as you dissolve your marriage.
Let Bolton Law Fight to Protect Your Interests
A divorce can be a life-changing process; that’s why it is best to have the right team helping, guiding, advising, and fighting for you. At Bolton Law, your well-being is our top priority; hence we appreciate the time, energy, and focus you devoted to building the family business.
We know that the division of marital assets is a complicated process when dealing with divorce. Both parties have vested interests in the family real estate, home appliances, cars, and business. That is why we are committed to protecting and preserving your rights and interests as you seek to retain your interests in the marital property during the divorce.
It is best to consult an experienced divorce attorney if you and your spouse own a business and are dissolving your marriage. At Bolton Law, our accomplished The Woodlands business valuation lawyer will aggressively represent you, fighting for your rights and interests to ensure you retain your portion of the company’s assets and ownership as community property or otherwise.
Call us at (281) 502-4931 or visit our offices in The Woodlands, Texas, to speak to your reputable and experienced business valuation attorney and learn more about how we can help.