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Valuing Businesses In Divorce

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Houston Business Valuation Litigation Attorney

When divorcing spouses are involved in running a business or have a stake in a company, it is critical for their attorneys to have a firm grasp on business valuation and complex property division. If disputes arise over the value of a business, it is necessary to have a lawyer equally skilled at negotiating and litigating.

Your share of the business is too important to risk on an inexperienced attorney. At Laura Dale & Associates, based in Houston, Texas, our knowledgeable family law attorneys have decades of combined experience and are prepared to fight for your property rights.

Business Valuation Litigation And How Our Firm Can Help

Business valuation litigation arises when parties dispute the value of a business during the asset division process. The valuation is crucial in determining equitable distribution, as one spouse may seek:

  • A buyout
  • A share of future profits
  • Compensation for their contributions to the business

These cases require a thorough business valuation to determine a fair resolution.

Laura Dale & Associates, P.C., provides experienced legal representation in divorce-related business valuation disputes. We work closely with financial experts, forensic accountants and valuation specialists to present a clear and credible assessment of business worth.

Whether you are a business owner seeking to protect your enterprise during divorce proceedings or a spouse looking to secure a fair valuation of shared business assets, we advocate for your interests and help you navigate your case’s legal and financial complexities.

Different Approaches To Valuing A Business During A Divorce

Several valuation methods may be used depending on the business type, financial structure and available data. The three primary approaches are:

  • Asset-based approach: This approach determines a business’s value by calculating the sum of its total assets minus liabilities. The method is particularly useful for businesses with substantial tangible assets, such as real estate, equipment or inventory. It considers both book value and fair market value, helping ensure all assets are accounted for, including intangible assets like patents or trademarks.
  • Market-based approach: The market-based approach assesses a business’s value by comparing it to similar businesses that have been sold recently. This method relies on market data and industry comparable to estimate worth. It is commonly used when there is sufficient market information, making it a practical approach for businesses in competitive industries.
  • Income-based approach: This approach values a business based on its earning potential. It involves analyzing past financial performance, projected future earnings, and discounting future cash flows to present value. The method is often preferred for businesses with strong revenue streams, as it provides insight into long-term financial viability.

Our firm understands the nuances of business valuation during divorce proceedings and works diligently to secure a fair assessment.

Our Attorneys Have Real-World Knowledge

Many of our attorneys have experienced the business world firsthand; they know how to read a balance sheet and properly value your business. When necessary, we work with experts such as forensic accountants to uncover hidden assets and ensure accurate valuation.

Once the value and the nature of the business assets have been determined, we are equipped to take whatever action is necessary on behalf of our clients. We are skilled negotiators and litigators who can provide you with crucial information about the financial and tax consequences of any property settlement.

Protect Your Right To Equitable Division | Contact Laura Dale & Associates

If you are a business owner or a spouse who cannot come to an agreement on the value of a business, we can help you determine the accurate value and achieve a favorable property settlement. Contact us today to arrange a consultation.

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