Business Valuation Attorneys
Are you trying to determine how much your spouse’s business is actually worth as part of your divorce in Texas? You will want to contact Gregory Law PLLC as soon as possible.
Instructions from the Texas Pattern Jury Charge Committee state that the value of an asset is its market value unless the asset has no market value. When an asset does not have a market value, its value is the value of its current ownership as determined from the evidence. While the value of many assets involved in property division during a divorce are more clear-cut and not subject to much dispute, valuation of businesses owned by one spouse can be extraordinarily complicated.
Determining the market value of a business can require the assistance of several experts. Certain business structures can prohibit transfers of assets to spouses. If a business held by one spouse is part of your divorce, Gregory Law PLLC can ensure that it is handled properly. Our firm represents clients all over the greater Houston area. Call (713) 861-1293 right now to schedule an initial consultation that will let our business valuation attorneys review your case and answer all of your legal questions.
Why Do I Need a Lawyer to Handle Business Valuation?
An experienced attorney will have the best understanding of the types of evidence that can satisfy court requirements for the valuation of a business.
In Taylor County v. Olds, the Court of Appeals established four grades of evidence which may be produced to prove value. The four grades, in descending order, were:
- Market Value — In many divorce cases, market value can be difficult to determine because determining the value of a business for the purpose of a divorce is much different from determining its value to a “willing buyer” (of which there is frequently none).
- Intrinsic Value — The intrinsic value of property is the actual monetary value the property provides for the owner. Intrinsic value can be based on a piece of property’s replacement cost, uses, or other facts not related to sentimental value.
- Cost of Replacement — As the name indicates, cost of replacement simply refers to whatever the cost would be to replace property that was damaged or lost.
- Value to the Owner — If market value, intrinsic value, and cost of replacement cannot be determined, then value to the owner is the final grade of evidence that can be produced to prove value. The value to the owner is highly subjective and can be based on many intangible factors such as time and money invested into the property.
For the purposes of a divorce, it is often beneficial to invest in a rigorous valuation of a spouse’s business. Even if a spouse is the sole owner of a company, the actual operations can involve several other different entities.
Whether a spouse owns a multimillion-dollar business with several offices or a simple small business in a local area, it is usually in the best interests of both spouses to determine a method of division that will allow the business to continue to operate. When a divorce is likely to make continuing the business too difficult, the spouses may want to have a proper valuation performed in order to sell the business.
Why Choose Gregory Law PLLC?
Myrna Gregory is a native Houstonian and the founder of Gregory Law PLLC. She handles a wide variety of cases in addition to divorce, being a certified Mediator by the A. A. White Dispute Resolution Institute and having been requested to serve as mediator by members of the Harris County Bar Association and other prominent legal organizations.
Kitty Crutcher and Melissa Bazan are attorneys at Gregory Law PLLC who both obtained their Doctors of Jurisprudence from Thurgood Marshall School of Law. Both lawyers are also members of the Family Section of the State Bar of Texas.
Our firm understands the complexity of business valuations and makes sure to work with experts in respective fields to accurately gauge the true value of a business. Gregory Law PLLC can help make sure that you get your fair share of your spouse’s business interests.
Business Valuation Cases We Handle
A business valuation will usually involve several different experts. Some of the titles a person might expect to be involved could include a Certified Business Appraiser (CBA), Accredited Senior Appraiser (ASA), and Certified Valuation Analyst (CVA).
When the proper team of experts has been assembled, that group will typically be responsible for conducting the valuation. In many cases, a complete valuation will involve reviews of such documents as:
- Original purchase documents
- Tax returns
- Previous litigation
- Buy-sell agreements
- Property tax records
- Balance sheets
- Partnership agreements
- Sales forecasts
- Financial statements
- Stock transfer ledgers
- Business interruptions
- Loan applications
- Insurance policies
- Equipment or real estate leases
A proper business valuation can be very important for certain standard of living considerations relating to a divorce. For this reason, it is critical for any person seeking a divorce from a spouse with business ownership interests to make sure that a thorough business valuation is performed in order to have a complete understanding of the possible resources at play.
People should keep in mind that the valuation of a business is not an exact science. Two different appraisers can arrive at very different conclusions based on the same information.
If you are filing for divorce in Texas and need assistance with a valuation of your spouse’s business, it is in your best interest to not delay in seeking legal counsel. Gregory Law PLLC helps people in Harris County and many other surrounding areas. You can have our divorce attorneys provide a complete evaluation of your case when you call (713) 861-1293 or contact us online.