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TX divorce lawyerDissolving a marriage is complicated and often has the potential of becoming an emotional and difficult process. Those risks tend to be especially high for those who are involved in a high asset divorce and own unique assets, such as a business, as they could be required to sell the company, or buy out their soon to be ex-spouse’s interest, both of which could cause significant financial strain. Obtaining an accurate business valuation is critical to ensuring that any property settlement entered into by a couple is fair, so if you or your spouse own a business and are considering divorce, it is critical to speak with an experienced high asset divorce attorney who can ensure that your assets are properly appraised.

Determining a Company’s Value

Hiring an expert in business appraisals is critical when it comes to placing a value on a company. This type of appraisal is complicated, as it requires a prediction of the potential future value of the company, as well as its past and current value. During this analysis, business appraisers will take a number of factors into account, including the company’s:

  • Expenses;
  • Earning history;
  • Earning capacity;
  • Dividend-paying capacity; and
  • Stock prices.

Depending on the method of valuation used, an appraiser may also be required to evaluate the price of company equipment and other tangible assets, such as:

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Texas divorce lawyerAlthough most people associate divorce with child custody issues, alimony, or deciding who will keep the marital home, many couples who jointly own a family business must also divide the company itself. This requires an in-depth valuation of the business, as well as a determination of whether the company is actually jointly owned. Furthermore, once a couple’s business interests have been appraised and the parties have agreed to a settlement, the business’s actual division will need to take place, which can be difficult, especially for couples with an acrimonious relationship. For help determining the value of your own business and coming to a settlement agreement with your spouse, please contact one of our experienced high asset divorce attorneys today.

Initial Considerations

Before deciding on how to divide a business during divorce proceedings, the couple in question must consider a variety of factors, including:

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Texas high asset divorce attorney, Texas divorce laws, Texas complex litigation lawyer, The more assets you and your spouse have, the more complicated your divorce will be. Trying to manage the emotions as well as the future financial impact of the breakup of your marriage is a big job. Before you get too far into discussion about how to split up the property or how support should be paid, make sure you don't overlook these common issues in high-asset divorces.

IRS and Asset Transfer

In a typical divorce, the transfer of ownership of property or assets from one spouse to the other does not create a taxable event. The IRS is not going to charge you income taxes for giving your spouse title to the car in the divorce.

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Texas complex litigation, Texas high-asset divorce, Texas complex divorce attorney, One of the largest assets to divide in a high-asset divorce is also one of the most difficult ones to value. Because it contains both objective and subjective financial values, and may involve both separate and community property, valuing a business is a very deliberate process that nearly always involves considerable legal debate.

Some Examples

The court-ordered sale of the famed Waggoner Ranch near Vernon is an excellent example of an extremely high-value family business. In much the same way as a high net worth divorce, that litigation involved family members who could not agree whether to keep the property, sell it, or do a little of both.

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8911 N. Capital of Texas Highway, Building 2, Suite 2105, Austin, TX 78759