Some married couples not only decide to spend their lives together but also join forces as business partners. Many marriages do not last, though, and when married business partners choose to end their personal relationship via a divorce, they often want to terminate their working relationship, as well. Divorce involving business partners can be complicated and contentious, and it is prudent for anyone considering such action to speak to an attorney as soon as possible. If you or your spouse are business partners and either of you wants to end your marriage, the knowledgeable Dallas divorce attorneys of McClure Law Group can let you know your rights and help you to seek the best result available in consideration of the facts of your case.
Divorce Involving Business PartnersBusinesses are assets and, like any other asset, are subject to division in divorce if they are considered community property. Whether a company is a community asset depends, in part, on when it began. Businesses started after a marriage began will most likely be deemed community assets unless an exception to the general rule dictates otherwise. Thus, the courts can divide them in a manner they deem right and just. Businesses started before the marriage began will typically be considered separate assets, and each party’s separate interest in the company will remain their separate property after the divorce unless they agree otherwise.
Options in Divorce Involving Business PartnersMarried business partners who decide to divorce have multiple options. In some instances, they may choose to keep their professional relationship intact and continue to work together. This can be challenging, however, as the issues that led to the downfall of their marriage can impact their working relationship. In many cases, one spouse will buy the other’s interest in the business and continue to run it independently. Sometimes, the parties will choose to sell the business altogether. They can also agree that one spouse will accept other assets that are equivalent to half of the business’s value. In rare instances, they may split the business into two separate companies.
Valuing Businesses in Divorce ActionsRegardless of which option divorcing business partners choose, it is critical that they obtain a fair and accurate assessment of the value of their company. Evaluating the value of a business involves weighing numerous factors, like the past, present, and future profitability of the business, its assets, and any real property it holds. There are numerous methods used to determine a business’s value. A business’s book value is derived by deducting a business's debts and liabilities from its assets. The intrinsic value method looks only at the actual value of a business's assets, while the value to the owner method evaluates how much certain factors, like a yearly salary and trained staff, are worth to the owner. Finally, the comparable sales method calculates the purported market value of a business by assessing the sales of comparable businesses.
Meet With an Experienced Dallas AttorneyWhen married couples who own a business together decide to divorce, they often have to determine the details of how to end both their personal and professional relationships. If you are your spouse are business partners, and you intend to seek a divorce, it is in your best interest to meet with an attorney to discuss your options. The experienced Dallas lawyers of McClure Law Group have ample experience handling complex divorce proceedings, and if you engage our services, we will work tirelessly to help you fight to protect your interests. Our primary office is in Dallas, and we can meet clients for consultation at our Collin-County office in Plano. We regularly represent people in divorce cases in Dallas, Rockwall, Fort Worth, McKinney, Frisco, Richardson, Irving, and Garland. We also help parties with family-law issues in cities in Dallas, Rockwall, Collin, Tarrant, Denton, and Grayson Counties. You can contact us via our form online or by calling us at 214.692.8200 to set up a confidential consultation.