Taking into consideration one's financial assets and liabilities during a divorce is a very important factor. With a business being involved, it can certainly make things a bit more complex. When dealing with a business, financial accounts, tangible assets and liabilities are all taken into account during the course of a business valuation. In most cases, this can be a very tedious and time-consuming issue to handle. However, the assistance of a Texas attorney who focuses on family law would benefit any individual who may own a business while in the midst of divorce.
The valuation of a business is certainly a vital part of the division of assets during the divorce process. Business interests may come into play when a couple's assets are being split, and there are several factors that will determine how much of an amount will be considered as marital property. When the business was acquired, how it was acquired and if one or both of the divorcing parties were actively involved in the business all are taken into a court's consideration. If one spouse receives a gifted or inherited business during the marriage, it is possible that only the growth between the current fair market value and the value on the date of the gift or inheritance could be subject to division.
Some family law attorneys may advise as to hiring forensic accountants or CPAs to handle the valuation of any business interests. This can create a working relationship with this individual and the attorney. In more cordial divorces, the parties may decide to hire a joint forensic accountant while reducing litigation costs and expediting the divorce process.
Every divorce in Texas is different and may require different plans of action. With so much financially at stake, one can help ensure that all assets, including an accurate business valuation, will be taken into account by acquiring legal assistance. An experienced family law attorney can help to protect the rights and best interests of a client and significantly increase his or her odds of achieving the best possible outcome from a divorce.
Source: thelegalintelligencer.com, "Gifted and Inherited Business Interests in Divorce", Terry Silver, Dec. 29, 2016