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Business Valuation in Divorce: How it Works

In a divorce, property division can be complex. When a family business is involved, it can be especially complicated. Here’s what you should know.

Background: Property Division During Texas Divorces

Texas is a community property state, which means that property acquired by both spouses during a marriage is divided 50/50 during a divorce. The property acquired during the marriage is called “community property,” and other property is called “separate property.” Separate property includes things like property acquired before the marriage, property received as a gift by only one spouse and property inherited by only one spouse. 

Businesses are divided according to these property division rules. If a business was started during the marriage by both spouses, a Texas court would be likely to consider it community property. But what if it was started by one spouse before the marriage, and then grown by both spouses working together? A Texas court might decide that part of the business was separate property and part was community property.

And what about the value of the business itself? How much is 50/50? Businesses are valued based on their fair market values – the amount that would be paid in cash by a willing buyer who would like to buy the business, but wasn’t forced, to a willing seller who would like to sell, but wasn’t forced.

It’s common for the spouses to disagree about the value of the business. The spouse who operates the business and plans to keep it after the divorce typically wants the valuation to be low. At the same time, the other spouse typically wants the business valued at a greater amount so they will receive a greater portion of the assets.

How Are Businesses Valued in a Texas Divorce? | Schneider Law Firm | iStock-863940274
817-799-7125 – Located in Arlington, the Schneider Law Firm, P.C., handles Texas divorce proceedings involving complex assets, like businesses. Find out how to protect your interests in business valuation.

The Role of Experts in Business Valuation

Spouses and their lawyers typically turn to experts to assist in business valuation. These experts are usually certified public accountants (CPAs) who are accredited in business valuation. Sometimes one spouse hires a CPA. Other times, both sides hire their own experts to conduct independent valuations as part of the divorce process.

How the Value of a Business Is Determined

There is no one right way to value a business, and different CPAs may use different methods to arrive at different numbers. Different methods for business valuation include:

  • The asset approach: This approach calculates the value of the business by finding the value of the business’s assets after liabilities have been subtracted. 
  • The market approach: This approach compares the business to other, similar businesses in similar markets.
  • The income approach: This approach looks at economic data to project the future income the business will generate. CPAs then convert that number into a present-day value.

No matter which method he or she chooses, a CPA has to review a significant amount of information in order to value a business. The financial records are critical, and business valuation often takes time and resources.

In Business Valuation, Have the Right Legal Team 

If your divorce involves business valuation, your lawyer can work with a well-regarded CPA to properly value the business and make sure your rights are protected.  Start by calling the Arlington office of the Schneider Law Firm, P.C., at 817-799-7125.

Sources: 

https://www.law.com/texaslawyer/2019/03/20/business-valuations-in-divorce/

Do I Need a Lawyer to Help Me With My Texas Divorce?

Do I need a lawyer for my Texas divorce? It’s a common question. Sometimes, to save money, people will see what they can do to go through a divorce without a lawyer. There are resources available to help you do it, and there is no law that requires people to have a divorce attorney.

Still, the court holds individuals to the same high standards that it holds lawyers. If you handle your own divorce case, Texas family courts will expect you to know which documents to file, how the process works, and the rules of court. 

Getting a Divorce Decree Without a Lawyer

Further, your divorce decree will be just as binding if you do not have a lawyer (unless there are unusual circumstances). That means that you will be held to child support orders, property division decisions and parenting plans ordered by the court. This could be good news – representing yourself can be very effective.

However, it can also be very bad news. What if you aren’t fully aware of the best ways to protect your rights in a divorce? What if you’re missing critical details? You could be agreeing to an unfavorable outcome that a good attorney would have protected you from.

Remember, your divorce is one of the most significant life events you may experience. It should take priority. In the same way that you wouldn’t handle your own surgery after only doing internet research, you shouldn’t handle your own legal affairs without experienced help.

Do I Need a Lawyer for My Texas Divorce? | Schneider Law Firm, P.C. | iStock-1053768310
817-755-1852 – No law requires people to have a divorce attorney in Texas, but having one is a very good idea. Talking with a lawyer at Schneider Law Firm, P.C., can help you get started.

That’s why it is extremely important to talk with a lawyer, especially if any of the following things are true:

  • You are a victim of domestic violence and are afraid for your safety
  • You have a disability or have a child with a disability
  • Your spouse already has a lawyer
  • You have a lot of debt or important property, like a home, retirement accounts or a business
  • You need spousal maintenance/alimony
  • You think it’s likely that your spouse may not be acting fairly

Having an Attorney Means You Don’t Have to Do It Alone

Walking into a Texas courtroom by yourself can be one of the most intimidating things you ever do. If you have a lawyer by your side, you don’t have to go alone. When you walk into the room and see the judge, your ex and maybe even your ex’s lawyer, you’ll know that you have someone experienced and knowledgeable by your side. You’ll have someone to tell your side of the story and to forcefully advocate for the best possible outcome.

Thinking You May Need a Lawyer?

If you think you might need a divorce attorney, it’s worth it to schedule a consultation. At the Ft. Worth office of the Schneider Law Firm, P.C., our attorneys can answer your questions about divorce, guide you through the process and help you achieve the best possible results. Call 817-755-1852 to talk with us about your situation.

Being a Good Parent, Even When You Can’t Always Be With Your Child

According to a 2019 research study, only about 60% of kids in the United States live with their married, biological parents. The rest live in many different situations—commonly residing with one biological parent with visitation from the second biological parent after a divorce. With this happening so frequently, it’s no wonder that many parents wonder how they can continue being good parents to their children, even when they can’t always be with them. Here are some tips.

Always Show Up When You Say You Will

Keeping your child’s trust is much, much easier than re-establishing if after you’ve lost it. So, it is critical to your relationship with your child that you don’t promise things you can’t deliver, and that you always show up when you say you will.

Of course, this is harder than it sounds. Modern-day parenting is complex, and most parents juggle heavy workloads and many competing responsibilities. But your children should always come first. Block off your visitation time on your calendar and make sure other people in your life understand that visitation time always take priority.

How to Be a Good Parent | Schneider Law Firm, P.C.
817-755-1852 – After a divorce, there are actions you can take to stay connected with your child. Here are some tips from the Schneider Law Firm, P.C., in Arlington, TX.

Make Visitation Time a Special Time to Focus on Your Child 

During your visitation time, make sure your child is your primary focus. Set aside time to do something with your child, like making an art project, going to the park or just playing video games together. It’s easy to get caught up in using parenting time to take children to and from activities but try to resist it: quality time is important.

If possible, make a special place in your home for your child—like your child’s bedroom that you decorate together. If that’s not possible, make sure your child has his or her own bed, toy bins and artwork on display. No matter what, make sure your child feels welcome in your home.

Find Ways to Stay Connected

Even if you can’t see your child every day, finding ways to stay connected can keep you feeling close. Set aside time to call your child or to send texts regularly. Add your child’s special events to your calendar so you will be sure to remember, even if you’re not there. Sometimes a silly GIF and a heartfelt “hope you had a great day” can go a long way toward making your kid smile.

Contact Us for Help With Legal Issues That Affect Your Kids

At the Schneider Law Firm, P.C., we understand just how important your relationship with your kids can be, and we work hard to protect it. If a legal issue affects your kids, our attorneys can help you take action and achieve the best possible outcome. For a confidential consultation, call our Arlington office at 817-799-7125.

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The Effects of Divorce on Children

In the past, we’ve written about how child development is affected when Texas couples divorce. A study, which included 8,000 people, found that divorce can have a substantial impact on a child’s ability to form relationships later in life. But, how does divorce affect children during childhood? And what can parents do to minimize the impact?

Research Shows the Biggest Impact Is in the First Few Years

While some children may feel a lifelong impact from their parents’ divorce, research shows that most children feel the biggest impact in the first year or two after a divorce. A study published in the journal Family Law Quarterly concluded that children commonly feel stress, anxiety, anger and other strong feelings immediately after the divorce. But, most of the time, they are naturally resilient and bounce back quickly.

Effects of Divorce Are Different at Different Ages and Stages

Not all divorces affect children in the same ways. All families are different, but children can be impacted differently depending on their developmental stages. For example:

  • Very young children may struggle to understand why the divorce is happening or why their home lives are different.
  • School-age children may blame themselves for the divorce or spend time wondering if things could be their fault.
  • Tweens and teens may become angry, blaming one parent or resenting necessary lifestyle changes. Research has also associated divorce and adolescent adjustment problems, like getting bad grades in school or disruptive behaviors.

The way you address these impacts also depends on your child’s developmental stage. No matter what, it’s important to pay attention to how your child is affected and to take steps to work through matters with them. If you are looking for warning signs—like anxiety or anger—you’ll be better prepared to help minimize the impact of your divorce on your children.

The Effects of Divorce on Children | Schneider Law Firm, P.C.
817-799-7125 – Research shows that most children feel the biggest impact in the first year or two after a divorce, and the effects of divorce are different at different ages and stages.

How to Minimize the Impact of a Divorce on Your Children

There are many ways to minimize the impact of a divorce on your children. One of the most important is to avoid putting your child in the middle of family conflict. That means not talking badly about your ex to your children, not forcing children to choose between parents, and avoiding oversharing of sensitive or emotional information.

You can also try to help keep as many routines as possible in place. Continue attending events you always attended with your children and stick to family routines. Of course, things will be different, but comfort and consistency can help support your child through the challenging first year after a divorce.

Divorcing With Kids? Contact an Attorney.

If you need legal help protecting the best interests of your children during your Texas divorce, call the Arlington office of the Schneider Law Firm, P.C., at 817-799-7125. Our Texas divorce lawyers are here to support you and your family.

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