Criminal Law
Alan Brown: 210-227-5103
Criminal Law
Alan Brown: 210-227-5103
Family Law
Jean Brown: 210-354-2662
Serving clients throughout San Antonio and the surrounding region

Se Habla Español

How to put a value on your family business

On Behalf of | Jul 17, 2020 | Divorce

During the course of a divorce, a couple will either have to figure out how they will divide their marital property or will have to have the judge do it for them.

Couples who own a family business, even if it is only one of them who is involved, will have to figure out how to split their respective interests in it.

Property division of a business can be complicated since, unlike major companies, family businesses do not have an easy to establish value since they rarely if ever go on sale to the general public. They also do not issue stock to the general public, so there’s no price tag on the business’s shares.

An owner can estimate the value of her family business and, by doing so, get an approximate idea of how much each spouse will receive. However, evaluating a family business is a complicated process.

For instance, it may take a financial expert to translate the business’s average earnings into an accurate price. Moreover, putting a value on the business is not just a matter of crunching the numbers. The location, the business’s customer base, and other intangibles can affect a business’s price.

Texas couples who own businesses and are going through a divorce or separation will have a lot at stake. If the business does not get divided properly, one spouse or the other could wind up on financially unstable footing after the split. In some cases, it could also cause a business failure.

Businessowners in the San Antonio area should therefore evaluate their legal options carefully if they are going through a divorce.