Protecting The Business And Offsetting The Equity
A divorce reaches into every corner of your life, including your business interests. Under Texas divorce law, business owners must account for the spousal share of a closely held business in the division of assets. This can be a knotty problem, including the impact on business partners and the ongoing enterprise.
At Law Thompson, P.C., we regularly represent business owners as well as the spouses of business owners in divorce proceedings, including situations where couples are co-owners. Travis Thompson is a board-certified divorce attorney* who knows how to reach an accurate valuation and a fair and practical reimbursement with minimal disruption to the business.
A Business Stake Is Community Property
All wealth accumulated during marriage is considered community property, including ownership stake in a small business, partnership or medical association. We have represented doctors and other professionals and business owners across many industries.
The first issue is to determine a dollar value for purposes of asset distribution. Ideally, the parties will agree to abide by the findings of one business valuation specialist, but sometimes we have to litigate competing appraisals.
The next issue is determining the spousal share. Did the business predate the marriage, and if so how much has the valuation appreciated? Did the spouse contribute to their partner earning a medical degree or sacrifice their own career to support the business? In other words, the spousal interest may be more than or less than a 50% share.
Lastly, if the business will continue, the spouse must be compensated accordingly. This could be a cash settlement or structured buyout over time. It could be an offset of other assets such as the marital home or retirement accounts. Travis Thompson is well-versed in trade-offs and other creative solutions to account for the ownership stake in the business.
Protect Your Marital Interest In The Business
Whether you built a successful business or medical practice or were married to someone who did, it represents a significant financial stake and there are important legal questions to sort out.
Law Thompson, P.C. represents men and women in divorce proceedings in Harris, Montgomery and Fort Bend counties. Call our Houston law office at 281-369-8665 or contact us by email to arrange a consultation about your goals and concerns.
* Travis Thompson is certified by the Texas Board of Legal Specialization as a specialist in Family Law.