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What business owners should consider during a divorce

Business owners in Texas and throughout the country may derive a significant amount of income from their companies. Therefore, it is important that the business is valued properly in a divorce. It is also important to ensure that business assets are divided in a manner that allows the company to run efficiently both now and into the future. To determine a company's value, an appraiser should be given access to relevant records and other information.

The final value may be based on how much its assets are worth or how much income it generates. It could also be valued based on how much similar companies in a given area or industry are worth. Enlisting the services of an independent valuation professional may prevent an owner from exaggerating income or expenses in an effort to create a favorable divorce settlement. It may also prevent a spouse from receiving both an interest in the company and maintenance payments based on future projected revenue.

It is important to note that manipulating financial or other records may be illegal or unethical. Therefore, a business owner may want to consider possible IRS or other government inquiries when taking actions to alter the perception of a company's performance. In some cases, state law may allow for adjustments to be made regardless of what the books say.

An accountant or an attorney may be able to help those who are involved in ahigh asset divorce and are going through a divorce. This may make it easier to reach a settlement in a timely manner without the need to go through litigation. Couples may also make it easier to reach a settlement by creating a prenuptial agreement. Such an agreement may determine ahead of time how a company would be divided in the event a marriage failed.

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