Powers Kerr & Rashidi, PLLC | Board Certified Family Law

Call 512-593-7560 To Schedule An Appointment

Powers Kerr & Rashidi, PLLC | Board Certified Family Law

Guiding Families Through Difficult Times
With Strength And Compassion

Powers Kerr & Rashidi, PLLC

The Attorneys At Powers Kerr & Rashidi, PLLC

Divorce Attorney For Business Valuations In Austin

When a divorcing couple owns or has a financial interest in a business, the property division process can become very complex. Often, the most crucial step in this process is determining an accurate value for the business; having an attorney who is experienced in handling business valuations as your counsel is, therefore, extremely important. With over 70 years of combined experience in family law, we at Powers Kerr & Rashidi, PLLC assist clients in properly valuing their businesses. We work meticulously to divide business interests in a manner that meets — or, in many cases, exceeds — our clients’ objectives.

Properly Valuing A Business In Austin, Texas

Accurately determining the value of a business and other substantial marital assets is essential for a proper division of a marital estate. A quality business valuation typically includes a detailed analysis of both a business’s tangible assets (e.g., cash, inventory, equipment, accounts receivable, loans, business debts) and its intangible assets (e.g., patents, copyrights, contracts, reputation).

Texas courts rely on qualified financial professionals to perform business valuations. These professionals apply a recognized methodology suited to the type and complexity of the business at issue, including:

  • Income approach: Values the business based on its earning capacity, cash flow history and projected future income
  • Market approach: Compares the business to similar companies that have recently sold in the same or a comparable industry
  • Asset-based approach: Calculates the total fair market value of all business assets and subtracts outstanding liabilities

We work with a variety of well-respected valuation professionals who are familiar with all types of business assets, and thus we are able to operate from a position of strength when negotiating or litigating these matters.

How Are Business Interests Divided During A Divorce In Texas?

Texas is a community property state, which means that all property acquired by a party during the course of a marriage is presumed to be subject to division between the divorcing parties. If a business is started or acquired during the marriage, and there is no post-nuptial agreement designating the business as one party’s separate property, the divorcing parties may fear that the business will be split in half. In actuality, however, businesses are usually left intact and awarded in their entirety to one spouse, while the other spouse is compensated with assets of comparable value.

Whether you wish to retain ownership of your business or want to ensure that you are properly compensated for the awarding of the business to your spouse, at Powers Kerr & Rashidi, PLLC, we will fight to accomplish your goals. We are skilled attorneys with decades of experience handling divorces involving business interests, and we know how to aggressively and appropriately advocate for our clients’ objectives.

How Do You Stop Your Spouse From Getting Your Business In A Divorce?

The first question to answer is whether your business qualifies as separate or community property under Texas law. If you owned your business before marriage or if you received it through inheritance, that may qualify as separate property. However, commingling business and marital funds can jeopardize that classification, which makes tracing the financial history of your business essential to protecting your ownership interest.

Moreover, identifying portions of your business value that Texas courts may exclude from the marital estate can further limit your spouse’s claim. At Powers Kerr & Rashidi, PLLC, we evaluate every available protection, from premarital and buy-sell agreements to structured buyouts and asset offsets, to fight for your business interests.

How Do You Protect Your Business During A Divorce?

Divorce does not pause business operations. As such, there are concrete steps you can take during proceedings, including:

  • Keeping business and personal finances strictly separate
  • Maintaining accurate and current financial records
  • Avoiding major transactions or ownership changes without consulting your attorney first
  • Engaging a qualified business valuator early
  • Coordinating with your CPA and financial advisers as a team

The ripple effects of a divorce can reach employees, clients and business partners, putting key relationships, daily operations and business value at risk. Powers Kerr & Rashidi, PLLC handles each case with discretion and a focus on protecting your business.

Protecting Your Business Interest In An Austin Divorce

Because your business is such a significant part of your marital estate, you need to make sure that the business valuation and property division process is handled properly by an experienced attorney. To learn more about how we can assist you, call 512-593-7560 or contact us online to schedule a consultation.