Fair, Comprehensive Business Valuation Services For Texas Divorces
If you and your spouse own a business together, the value of your company will figure significantly in your divorce. This is not an uncommon situation in San Antonio, where one out of every three businesses is family owned.
If one of you does not buy out the other’s business ownership as part of the divorce, the company’s value will be divided along with your other marital assets as part of property division. Business valuation is the process by which a company’s value is determined.
If you and your ex do not agree on the value of your jointly owned business, the attorneys at The Law Office of Lisa A. Vance, P.C., can help you advocate for your best interests in this area, whether through negotiation, collaborative law discussions or litigation. Our namesake attorney has more than 40 years of family law experience in Central Texas, and our firm has deep ties to San Antonio. At our firm, we know how complex business valuation disputes can be, and we’re ready to help you protect your legal and business interests.
Whether you need help with a business valuation, need to learn how to split your pension or retirement plan, or have questions about what to do about assets acquired through a commercial transaction, call us at 210-265-6277 for an initial consultation.
How Business Valuations Work And Why They Matter
Business valuations in Texas follow a standard process. While each divorce’s business ownership situation is unique, here are some of the common steps in the valuation process.
- Agreeing on a valuation method. The two main methods of business valuation in divorce are income valuation and market valuation. Income valuation is where a formula is used to consider cash flow patterns, risk and return on investment to determine value. Market valuation compares the enterprise to similar businesses that have recently been sold.
- Gathering documentation and hiring professionals. A professional business appraiser will request several years’ worth of the business’s tax returns, income statements and balance sheets.
- Assess both tangible and intangible assets. The appraiser will consider both “hard” assets like property and equipment, as well as intangibles such as brand reputation, customer loyalty and intellectual property. All of these will factor into the final value.
- Account for conditions influencing premium or discount pricing. Your business does not exist in a vacuum, and value can increase or decrease due to market conditions, your proportion or share of ownership, and operational risks.
When there is a dispute about the value of your business during your divorce, it can add stress to an already challenging time. However, there is great worth in having a business valuation done. Benefits from a valuation that extend beyond the property division process of divorce include having a clear picture of your company’s financial health, possessing a credible assessment of its sales value, and getting access to potential new sources of funding.
Digging Deep To Find Hidden Value In Businesses
Some divorces involve a spouse who attempts to hide the value of their business to protect assets they do not want to share. This practice is unethical as well as illegal.
Our legal team partners with a team of professionals who can help you determine the full extent of your ex’s resources. These may include:
- Forensic accountants
- Private investigators
- Certified valuation analysts
- Certified financial analysts
For example, if your ex is operating a “cash only” business to minimize a paper trail of their revenues, our attorneys may need to contract with private investigators or speak with federal and state government officials to obtain evidence that establishes the value of the company.
Another area in which we may tap multiple professionals to assist in business valuation is if your ex is operating a business outside the United States to hide the income for valuation purposes. Regardless of your circumstances, our attorneys will take care of your interests and aggressively advocate for a comprehensive and fair evaluation of your family’s business income.
Contact The Law Office of Lisa A. Vance, P.C., For Supportive Divorce Advocacy
Our office is close to downtown San Antonio, near the Pearl Brewery and the San Antonio Museum of Art. Call 210-265-6277 or complete our online contact form to schedule a confidential consultation about your needs. Spanish translation services are available upon request.