Business and Divorce Attorney in Austin, Texas
How are closely held and family businesses divided in a Texas divorce?
How are closely held and family businesses divided in a Texas divorce?
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00:04
the closely held business in all
00:06
likelihood will be divided by looking at
00:10
who’s the primary
00:12
person engaged in that business if i’ve
00:16
got an engineering firm
00:19
the engineer is most likely to be the
00:21
party who’s going to be awarded that
00:23
asset
00:24
then the problem becomes what’s the
00:26
value of the asset
00:28
closely held businesses uh
00:31
in texas get valued and you have to
00:34
separate out the enterprise goodwill
00:37
which is okay how many people come to
00:40
this business because of the business
00:42
versus the personal goodwill how many
00:45
people come to this business because
00:47
this is the engineer they want to talk
00:49
to depending upon those kinds of numbers
00:52
it affects the value of the business
00:54
once you get the
00:55
valuation done
00:58
typically you have to come up with a
01:00
methodology
01:01
for equalizing the division of the
01:03
estate i’ll give you an example i had a
01:06
case where
01:09
the business was worth about eight
01:11
million dollars but we didn’t have four
01:13
million dollars in the bank
01:15
to award to the wife and so we had to
01:18
come up with a
01:20
mechanism for getting her paid off over
01:22
time and that’s pretty common
01:24
in a
01:26
closely held business case
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Austin, TX family law attorney Bill Powers explains how closely held and family businesses are divided in a Texas divorce.
