Dividing Businesses in a Texas Divorce

Dividing Businesses in a Texas Divorce

Many families begin their own business or professional practice which they run together as husband or wife, or co-own. When a couple decides to divorce, this can lead to excessive difficulty. How do you divide a business carefully and fairly at the time of the divorce? Like any other asset, a business or professional practice must be considered in the valuation process of community property.

The Texas law mandates that the extent to which the business has been developed during the marriage is all considered community property interest that must be divided during divorce. The success of a business prior to marriage is only attributed to the owner at that time.

In Texas, one of the most time consuming and tricky aspects of determining the value of a business or professional practice is in evaluating the "goodwill." This refers to the intangible value of a business based on the company's established name or reputation. It is imperative that professionals determine the goodwill value of a company prior to dividing it fairly.

Normally, certified public accountants or business appraisers are hired to determine the value of a business or professional practice. These professionals will review the books and records of a business or practice and prepare a written report as necessary. This report can be used to choose the fairest division of property. Many divorcees want to divide a business in a way that best preserves the life of the business.

If you are going through a divorce that involves splitting a professional practice, then you need to contact a skilled Plano divorce lawyer at the Zendeh Del Law Firm, PLLC. A Plano divorce attorney at our firm will help you to carefully divide your assets and business so that you will not jeopardize the success of the company.