Divorce Attorney In Dallas Fort Worth
What Happens to the Business or Professional Practice of One or Both of The Spouses In a Divorce
A business or professional practice developed by one or both of the spouses during the marriage is considered community property owned equally both spouses. If the spouses cannot reach an agreement as to how to handle a business or professional practice in the divorce, then that matter is left to the court. It becomes part of the community property of the divorce that the court must apportion between the two spouses in a “just and right manner.”
But before either the spouses or the court can decide how to handle a business or professional practice in a divorce, the value of that business or professional practice must be determined. How much is that business or professional practice worth?
In particular, a divorcing spouse will want to make sure the “goodwill” value of the business or professional practice is properly appraised and valuated. “Goodwill” is the intangible value a business has based on its established name or reputation.
Usually, an accountant or professional business appraiser should be retained to properly valuate a professional business or practice, particularly the intangible goodwill value of that business. A lawyer can assist and guide a spouse in having his or her business or professional practice properly valuated so that asset can be handled appropriately in the divorce.
Improper valuation of a business or professional practice in a divorce can cause a spouse to lose thousands, if not millions, of dollars in the divorce settlement—money to which he or she may be otherwise entitled.
If you would like legal counsel during a separation and/or divorce where there is interest in a business or professional practice then you are welcome to call us or e-mail us through the contact form.