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Owning a business can create a complex divorce

Many Texas entrepreneurs build their wealth with a spouse. Working side-by-side, they find a niche in a market and work together to build a dream. As time passes, the relationship may start to unravel, and the couple may be looking at filing for a divorce. Untangling years of a intimate relationship can be painstakingly frustrating and time consuming, but when a privately owned business is one of the assets, one may find it difficult to objectively look at the possibility of a complex divorce.

Figuring out how much the business is worth is crucial to understanding how to split it up or buy a spouse out. Allowing a third-party valuation expert in to carefully review the company's financial statements and all aspects of the operating of the business can help to determine a more accurate and emotionally detached opinion and recommendation. Should the business have already been in operation prior to tying the knot, an attorney may suggest only including the increase in value of the business since the marriage date.

In some instances, one spouse who has more financial involvement with business may try to hide income or assets. By understating the assets and income, a spouse may be required to pay less in child support and alimony. This is where that valuation expert is important to maintaining transparency.

A complex divorce that includes a privately-owned business could be overly difficult when both parties have a vested interest. With the use of compromise, collaboration, transparency and a valuation expert, the assets within the business can be accurately noted, and a fair buyout and other payments can be set up accordingly. When mediation isn't a viable and result-producing option, those seeking a divorce can benefit from the assistance of a Texas attorney who has knowledge in family law and business valuations to help ensure that they receive their fair portion of assets.

Source: wealthmanagement.com, "Three Pressing Issues For Business Owners Going Through a Divorce", Mark S. Gottlieb, Jan. 30, 2018

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