Valuation · Ending a marriage No. 02
Business valuation
When one of you owns a company or a professional practice, its value is often the biggest number in the case and the easiest one to argue about.
(What this involves)
How we approach it
A business has no sticker price. Two qualified experts can study the same company and reach very different numbers, depending on the method they use, what they count as normal income, and which discounts they apply. We make those choices visible and defend the right ones, whichever side you are on.
We represent owners who need their company protected from overreach, and spouses who suspect the business is being made to look smaller than it is. Either way the work is the same: understand the business as well as the people who run it.
This may apply if
- You or your spouse own all or part of a company, a medical or dental practice, or a franchise
- Revenue or profit dropped suddenly once divorce was mentioned
- Personal expenses run through the business
- There is a buy-sell agreement, or a partner who will be affected
- The business started before the marriage and grew during it
Questions we answer early
- 01 Is the business separate, community, or partly both?
- 02 What is it worth, and as of which date?
- 03 Does personal goodwill count, or only the business's own goodwill?
- 04 Can the community claim reimbursement for effort put into a separate business?
- 05 How can the company stay intact while its value is shared fairly?
Illustration · one company, three methods
How the work runs § 2
Four steps, in order.
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01
Documents
Tax returns, financial statements, general ledgers, owner pay and any buy-sell or operating agreements.
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02
Normalize
Adjust for personal expenses, unusual years and owner pay that is above or below market.
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03
Method
Income, market and asset approaches compared, with reasons for the one relied on.
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04
Test
The other side's report reviewed line by line, and their expert deposed when the gap is large.
The law, in general terms
Texas, in general terms
Texas courts generally treat personal goodwill, the value tied to one person's own skill and reputation, as not divisible, while goodwill that belongs to the business itself can be. When a separate-property business grows during the marriage, the community may have a reimbursement claim for time, talent and effort that was not fairly paid.
Rules differ by state
Other states treat goodwill and the growth of a premarital business differently, and the valuation date can change from state to state. A report written for another state's rules may need rework here.
General information, not legal advice. Your facts, and the law that applies to them, are what the consultation is for.
Example costs § 3
What it can cost, in examples.
Ranges from recent matters, not quotes. Outside experts bill separately. After the consultation you receive a written estimate for your case.
All fees and retainersOften asked
Will my spouse get part of my company?
Not necessarily the shares themselves. More often, the owner keeps the business and its value is balanced with other assets or with payments over time. Whether any of it is community depends on when and how the business started and grew.
Do we each need our own valuation expert?
Not always. A single neutral expert can save money when both sides trust the process. When the stakes are high or the numbers are far apart, separate experts are common.
Talk to us about business valuation
Names first for the conflict check, then a 90-minute strategy consultation with the attorney who leads this work. No details through the form, please.
Or call the office
(214) 555-0163We never leave a detailed voicemail unless you tell us it is safe.