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Valuing a business for property division purposes

It is possible that a business will need to be among the assets divided in a Texas divorce. In order to determine its value for property division purposes, it might be necessary to have an appraisal performed. The parties will need to decide how thorough the valuation process will be. For those who want the most accurate figures, it is beneficial to have a full valuation conducted.

It may also be worthwhile to provide the most accurate and reliable figures if a judge or arbitrator will use them during the settlement process. The one downside to a full valuation is that it may take longer to complete as well as cost more to perform. Therefore, those who are lacking time or money may want to opt for a simpler calculation of value instead.

However, there are no hard and fast rules when it comes to which option to choose. If a party feels that the cost of a full valuation may net more money or a larger ownership stake in a divorce settlement, that may be the best option. Full valuations may also be necessary if the divorce is a contentious one or if a company is structured in such a complex manner that a calculation of value may not provide any useful information.

Property division can often be one of the most contentious divorce legal issues. This can be especially true when a business is part of the equation. When the business was in operation before the marriage, the question of whether it appreciated in value during the time that the couple was together may need to be addressed, as such increase could be deemed marital property. A family law attorney could provide advice in this type of a situation.

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