When divorce cases involve ownership of a business or a professional practice, experienced counsel and representation become vital to navigating complex issues of property division. This includes:
As recognized leaders in both family law and business law, our legal team at Hendershot, Cannon, Martin & Hisey, P.C. is equipped with the breadth of knowledge to help clients navigate the challenging issues inherent to dissolving a marriage when business ownership and professional practices are involved- whether that involves negotiating an equitable settlement agreement, or aggressively litigating when necessary.
Discuss your rights to a business or professional practice with an experienced Houston divorce attorney from our law firm. Call (713) 909-7323 or contact us online 24/7 for an initial consultation.
Whether you own a business or professional practice, are the spouse of a business owner or professional, or share ownership of a closely held business with your spouse, you will need to establish objectives with reasonable expectations. Although every case is unique and outcomes vary, there are generally three ways to resolve ownership issues:
When it comes to valuation, each type of business structure offers its own particular challenges and opportunities in divorce:
Division of the value of a business or professional practice depends on their size and structure, as well as the unique aspects inherent to their value and according to what is considered separate property and community property under Texas law. From simple mom-and pop stores organized to elaborately arranged limited partnerships and limited liability companies (LLCs), your interests must be characterized and valued by an independent professional.
During divorce, the professional practice will be subject to division. Because part ownership cannot be given to a spouse who is not licensed to practice in that field, issues of division largely depend on how the practice is structured and the professional spouse’s ownership role. As with other businesses, there are basic structural differences between traditional partnerships and entities such as PLLCs, which are now widely used among professionals.
In many cases, a spouse’s right to a professional practice is resolved through a buy-out of the non-practicing spouse’s interest in the value of the practice, which can be complex when elements such as goodwill are considered. Based on the unique details of your case and preference of both parties, creative solutions can be reached to ensure equitable division without harming the practice. This may include, among other things, using contractual alimony or shares of other community property to buy out an interest.
With the ability to leverage our insight as business and family law attorneys, we can effectively and creatively address issues involving valuation, community and separate property, and the most appropriate methods for equitable distribution, including settlement agreements negotiated through mediations, or hard-fought resolutions secured through focused and aggressive litigation. As resolutions secured in these matters leave the future of businesses, practices, and individuals in balance, there is no substitute for experienced counsel and preparation.
Speak personally with a member of Hendershot, Cannon, Martin & Hisey, P.C. Call (713) 909-7323 or complete this form 24/7 for an initial consultation.