Business and Divorce Attorney in Houston, Texas
How is a business valuation determined in divorce?
How is a business valuation determined in divorce?
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in
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texas a business valuation in a divorce
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is determined by looking at several
00:09
different factors
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for example the court will look at the
00:14
actual
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assets of the business you know the bank
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account the
00:18
inventory of the business how much you
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know the hard
00:21
assets are valued at then the court’s
00:24
also going to look at
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some intangible factors what we call
00:29
goodwill
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whether the business has a good
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reputation reputation in the community
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uh whether it’s you know been a
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long-standing business
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how it uh generates income and
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and the court will also consider the
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business
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in relation to other businesses for
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example you know is
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this mom and pop store of the same value
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as the other mom and pop store because
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when they
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they look at it they’re trying to
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evaluate the total value of the entity
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so that at the time of the divorce the
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court can
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do what’s called a just and right
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division but one of the other things
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that the court will consider
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in making that valuation is whether or
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not that
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business is community property or
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separate property
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and that is a preliminary determination
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that would be made
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prior to actually valuing the business
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to divide it
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because if it belongs to one of the
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parties if it’s truly
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one party separate property then the
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court does not have the authority to
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award that
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value or that business to the other
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party
Houston, TX family law attorney Judie Sadler explains how a business valuation is determined in a divorce.
