Business Valuation in Divorce

To fairly divide up property in a divorce, valuing a business owned by the spouses can be an important part of the process. Our attorneys are here to help you evaluate whether to value a business and find the right expert to do it.

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Dealing with Businesses in a Divorce

In a Texas divorce, the court must divide any business the spouses own, such as partnerships, corporations, or limited liability companies. One spouse can keep the business and “buy-out” the other spouse. Or, the business can be sold. The court generally cannot, however, award business property to one spouse. As a simple example, if the parties own a real estate investment company, the court cannot reach into the business and divide up the profits sitting in a corporate bank account.

This raises an important issue: how does the spouse not receiving the business get his or her fair share? In every divorce, we divide property based on the value of all property. For instance, to determine the value of a bank account, we look at the account balance. To value a business, it is a more complicated process that often involves hiring an expert.

Since each case involving a business is different, our attorneys can help guide you through the decision to value a business in your case.

Hiring the Right Expert

Every business is different. It may be small or large. A business may involve commercial real estate, valuable intellectual property, or may be a medical practice. Since each business will have its own attributes, the expert should be qualified to determine the value. In addition to being comfortable with the subject matter, the expert should also be willing to work with the the divorce attorneys and possibly testify in court. Our attorneys can help select and hire an expert who will be appropriate for your case.

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