Divorce for business owners can involve complicated issues vitally important to both spouses.These issues include valuation of the business, child support over guidelines and spousal support. Often, the business is the family’s most valuable asset.For a discussion of property division, see the Property Division page. The fair market value of a a business can have huge implications in a divorce and is often hotly contested. The divorce attorney must be familiar with both the rules involved in such valuations as well as the relatively small number of experts working in the Houston area who can provide valuation opinions. Placing a value on a small ice cream shop 100% owned by the wife, for example, is very different than valuing the interest of a 10% partner in a large insurance agency. Different rules and discounts apply to each situation and some experts are much more qualified than others to be involved in each case. Knowledge, experience and the right expert are essential to a fair outcome. Working with a professional business evaluator, attorney Enos helps clients determine business value and hopefully reach an agreement on the community property division. Click here for a more detailed discussion of Business Valuation in a Texas Divorce.
Many small business owners pay personal, household expenses directly from the business accounts. This practice can effect what the business owner’s real income is and thus change child support calculations. A business owner who works many long hours (as often is the case), may be at a disadvantage in a child custody case simply because of those work hours. On the other hand, a business owner is usually in control of her own schedule and really may be more flexible when it comes to spending time with the children.
Representation of the spouse of a business owner often involves more work because the other spouse often has control of information and financial data. Often, a payout plan is negotiated to provide income and compensate the otherl spouse for the community’s interest in the business. things can get very tricky when both spouses work in the business and sometimes one spouse must be ordered to leave the business while the divorce is pending.