Understanding Complex Property Division During Divorce
As a community property state, Texas views most of the property you and your spouse acquired during your marriage as marital property. As such, that property is subject to a “just and right” division between you. What exactly does that mean? That depends on many factors and the judge often has some leeway.
When that property is complex and difficult to divide, such as a family business, you need a skilled attorney who understands both how the division process works and how to advocate for your interests with the court. Board-Certified Family Law attorney Caroline McClimon has the experience you need at your side. She will make sure you understand every option and help you make the right decisions to protect your financial future.
Dividing Your Business
In Texas, your business can be part of the marital property, even if you started that business before your marriage. If your spouse worked for or contributed to the business or if the business increased in value during the marriage, part of it may be considered marital property during your divorce.
To divide the business, you must first know how much it is worth, which means having a valuation done. There are three common ways to value a business:
- Market valuation – This method looks at what the business would likely sell for, based on the recent sales of similar businesses.
- Asset valuation – This method combines the value of the business assets and debts.
- Income valuation – This method accounts for the profit and cash flow of the business.
If you must divide the business, you and your spouse could attempt to come to an agreement where one of you buy the other out or you agree to sell the business and divide the net profits.
Other Complex Property
A business is not the only complex property to divide in a divorce. Nor is it the most common. Retirement accounts require special handling and are almost always considered marital property, as you likely continued to grow your 401(k) or pension during your marriage. You may need a special order after your divorce called a QDRO to divide the property.
If you own multiple pieces of real estate, the court may view those as marital property, regardless of who is on the title to the property. You may need to have an assessment done on those properties before determining how to divide them. Any property with a high net worth needs special attention and valuation.
No matter what complex property you have, our team is ready to handle every step. We provide tailored solutions to fit each client’s legal goals. You deserve a solution personalized to your needs.
Contact Us
To discuss your case with Ms. McClimon, schedule a consultation as soon as possible. You can reach us by calling our Smithville office at 888-712-4804 or you can fill out our online contact form.