Wilson Whitaker Rynell

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972-248-8080 DALLAS
713-830-2207 HOUSTON
512-691-4100 AUSTIN
wilson whitaker rynell attorneys and counselors at law logo
972-248-8080 DALLAS
713-830-2207 HOUSTON
512-691-4100 AUSTIN

Business Valuation in Divorce in Texas

ATTORNEYS IN DALLAS

Independent business valuations can resolve marital disagreements when dividing businesses of divorcing couples.

Business Valuation in Divorce

The ownership of a private business offers unique freedom and opportunities not often found in traditional employment settings. However, if the business owners choose to divorce, assessing the value of the business can be a complex and convoluted task. If you or your spouse own a business and plan to dissolve your marriage, it is important to seek guidance from experienced divorce lawyers promptly to help you determine the suitable method of valuing the business in your divorce case.

Businesses Acquired during Marriage

In Texas, businesses acquired during a marriage are typically considered community property, just like any other property. In some cases, there may be pre-marital or post-marital agreements that define each spouse's interest in a business. However, if such an agreement doesn't exist, a business acquired during the marriage is presumed to be community property. Additionally, portions of the value of any business obtained by one spouse prior to the marriage may also be community property or may give rise to a reimbursement claim to the community estate, especially if the non-owner spouse contributed to the business's growth or marital assets were used to fund it. If some or all of a business is community property, it is crucial to ensure that its value is accurately assessed to facilitate a fair distribution of community property. Therefore, seeking assistance from experienced divorce counsel is advisable to navigate the complexities of business valuation in divorce cases.

Market Value vs Book Value

The value of a business can be measured in different ways. Two commonly used measures are the fair market value and the book value. The fair market value reflects the amount a buyer would pay for a business if the buyer was interested in buying it, but not obligated to do so, and if the seller was willing to sell but not compelled to. This value takes into account intangible factors such as the business's reputation and goodwill. In contrast, the book value of a business only considers its financial worth, which is calculated by subtracting liabilities from the value of assets and property. As a result, the book value is usually lower than the market value.

Methods of Business Valuation in Divorce

Various methods are available for determining the value of a business, including the income-based approach, asset-based approach, and market-based approach. The suitability of each method depends on factors specific to the business and your ownership interest. The straight book value is typically not preferred by Texas courts because it may not accurately reflect a business's true worth. However, the adjusted book value, which involves determining the market value of the business's tangible assets and subtracting any liabilities, is a common asset-based approach. Income-based approaches assess a business's potential future income, and there are various methods for this type of valuation. Market-based approaches look at comparable businesses' sales to establish a business's fair market value. In cases where no comparable businesses are available, using the comparable business method can be challenging.

An expert business appraiser is likely needed to determine the business's value accurately. The appraiser will evaluate the business's financial records, such as bank statements, records of monthly and annual expenses, tax returns, and other relevant information to develop an estimate of its true value. A qualified divorce attorney can help you understand the advantages and drawbacks of each valuation method and advise you on which method would be most beneficial for your case.

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Best Texas Divorce Lawyers

Our Dallas Divorce Attorneys Serve Clients Throughout Texas


In order to best prepare yourself during the divorce process, it is vital that you have a qualified divorce attorney by your side. Our divorce law firm is dedicated to providing knowledgeable, professional, and effective legal counsel for all types of family and divorce matters. When you work with our experienced Dallas family law attorneys, you can trust that we will have your best interests in mind.

Speak with an Experienced Divorce Attorney

Determining the true value of a business can be a challenging and time-consuming process. The attorneys at Wilson Whitaker Rynell are equipped to handle divorce cases that require the valuation of businesses. Our firm represents clients in divorce cases in various Texas cities, including Dallas, Austin, Houston, Fort Worth, and all cities within Dallas County, Tarrant County, Collin County, and Denton County.

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By Leigh Whitaker January 28, 2025
Female Divorce Attorneys in the Dallas-Fort Worth Area In many instances, divorce cases are challenging and emotionally taxing experiences. For this reason, it’s common for people to prefer working with an attorney of the same gender because they feel as though the attorney can empathize and understand their situation more. At the end of the day, the gender of your attorney may not affect the outcome of your case, but it’s important to feel as comfortable as possible while navigating through the process. At Wilson Whitaker Rynell, our experienced female divorce attorneys offer compassionate and empathetic approaches while they develop a comprehensive legal strategy to represent you. Why Should You Choose a Female Divorce Lawyer? There are many reasons why hiring a female divorce attorney can help you throughout your divorce. For one, they often have experience working on issues that disproportionately affect women in divorce such as spousal support (alimony), child custody disputes, and asset division. Additionally, female divorce lawyers offer a unique level of empathy, understanding, and communication. As a result, many clients feel that they are more approachable and compassionate, which is beneficial when dealing with the emotional turmoil of the process. More importantly, female divorce attorneys are more familiar with how the court treats women in divorce cases and use this knowledge to strategically protect their clients’ interests, whether male or female. Why Our Female Divorce Attorneys May be Right for You At Wilson Whitaker Rynell, our female divorce attorneys are skilled, knowledgeable professionals, they also have many years of experience in handling complex divorce cases. 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While this often works in favor of mothers, women may still face hurdles in proving they are better suited to provide the stable environment the child needs, especially if their ex-spouse disputes custody. Factors such as work schedules, living arrangements, and financial stability can come under scrutiny. Child Support Issues While Texas law allows women to seek child support, collecting these payments can sometimes prove difficult. Women awarded child support may find themselves dealing with ex-spouses who delay payments, make partial payments, or refuse to pay altogether. Enforcing child support orders often requires legal intervention, which can add to the emotional and financial strain. Division of Marital Assets In Texas, a community property state, marital assets are typically divided equitably during divorce. Women who are awarded assets such as the family home may face challenges related to maintaining the property, refinancing a mortgage, or covering associated expenses. Additionally, women who sacrificed their careers to support their spouses or raise children may feel disadvantaged during the division of assets if their earning potential is limited compared to their ex-spouse. How Your Divorce Attorney Will Support You Each divorce case is unique, and having an experienced attorney standing by you is vital. Whether you’re dividing assets, negotiating child custody, or managing other complex legal issues, the female divorce attorneys at Wilson Whitaker Rynell are here to protect the interests of you and your family. Our attorneys will take the time to understand your unique circumstances and empower you to make informed decisions that support your career, family and future. When you choose a female divorce attorney from Wilson Whitaker Rynell, you can trust that they will: Prioritize your family’s best interests. Negotiate with integrity, ensuring fairness and transparency. Clearly explain all your options and their potential outcomes. 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