Grapevine, Texas Divorce Lawyers for Business Owners

Reliable Attorneys for Divorcing Business Owners in Grapevine

Divorcing as a business owner can come with extra complications. You may fear what will become of your company at the end of your marriage, especially if your spouse has significant interests in the business. A Grapevine, TX business divorce lawyer can guide you through the process of valuing and dividing your business.

At Powell Law Offices, P.C., we can provide you with dedicated counsel and representation during your divorce. We have received many accolades for our dedication to our clients, rated among the Top 10 family law attorneys by the American Institute of Family Law since 2020. We have a deep knowledge of the law, allowing us to effectively represent your interests as a business owner in and outside of court.

Determining Ownership of a Business in a Divorce

When a couple divorces in Texas, determining whether a business is community or separate property is one of the most important—and often most contested—issues. Texas is a community property state, which means that assets acquired during the marriage generally belong to both spouses. If a business was created or significantly expanded during the marriage, it will likely be considered community property, even if only one spouse's name appears on ownership documents.

However, a business may be treated as separate property if it was founded before the marriage, inherited, or received as a personal gift. Even so, complications often arise when marital funds or joint labor contribute to the growth of a separate business. In those cases, the non-owner spouse may be entitled to reimbursement for the value the community estate added to the company. Determining ownership requires reviewing business records, capital contributions, and financial transactions, often with the help of financial experts.

How Are Businesses Valued in a Divorce?

Once ownership is established, the next step is determining what the business is worth. Valuation is a complex process that considers the company's financial health, market conditions, and future earning potential. Texas courts often rely on professional business appraisers to perform this analysis.

There are several common valuation methods. The income approach looks at the business's current and projected profits to determine its present value. The asset approach focuses on the total worth of tangible and intangible assets, such as property, equipment, and goodwill. The market approach compares the business to similar companies that have recently been sold. Each method has advantages and is chosen based on the nature of the business, its industry, and available data. Accurate valuation is critical because it directly affects how the marital estate will be divided.

Dividing Up Businesses and Business Interests in a Divorce

Once a value is assigned, the court must determine how to divide the business in a fair and practical way. Selling the business and splitting the proceeds is one option, but it is rarely preferred if the company is profitable or provides one spouse's livelihood. Instead, the court may award full ownership to one spouse while granting the other assets of comparable value, such as real estate, investments, or cash.

In some cases, a buyout arrangement or installment payment plan may be used to ensure an equitable division. Business division in Texas divorces requires careful planning to protect both parties' financial stability while maintaining the business's ability to operate successfully. Our divorce lawyers can help you negotiate for ownership of your business to minimize disruptions to your daily operations.

Contact a Grapevine, TX Divorce Lawyer for Business Owners

At Powell Law Offices, P.C., we are here to help with the division of your business in your divorce. We are skilled at handling high-asset divorces, so you can trust us to handle your divorce with care. To schedule a free in-person or virtual consultation, call us at 972-584-9382 or contact our Grapevine, TX business divorce attorneys.