Based in Dallas, Texas, the Nacol Law Firm PC, traces its roots to the firm of Mark A. Nacol and Associates PC, established in 1979. The Nacol Law Firm team shares its experience on a variety of legal topics here. See our recent posts below.
In today’s unpredictable economy there has been a continuing growth of small businesses and a substantial decrease of existing established businesses in Texas. In the regrettable instance of “Divorce” how may the “Family Business” be divided between a dissolving couple to reach a fair and reasonable result for both parties?
In such a situation, an experienced Family Law Attorney with the aid of economic experts becomes critical in establishing a fair and equitable price on the business, consulting the client on their rights relative to the business, helping with negotiations for a business entity to be sold, transferred, or appraised, and making sure the client’s rights are protected in the transaction.
The most important fact to establish is a credible determination of the true fair market value of a business and how the business or the business assets are to be divided between the spouses in the divorce.
The dividable interest is determined by the fair market value of the business. This value is the price a willing buyer would pay and a willing seller would give in a purchase with both buyer and seller having reasonable knowledge of the relevant facts of the business and neither being under pressure to buy or sell the business.
During a Divorce, the concept of a credible hypothetical buyer and seller may be determative and very complicated. Going through a divorce is difficult enough, but fairly determining the true value of the business in the process can be complicated and sometimes expensive. There are always two different ideas in every divorce and the family business will bring out the some very serious opinions of just what is the “fair market value”! Ideas may range from too high in today’s economy to too low base on emotional attachments, complicated further by feelings as to possible other family members who own or claim parts of the business. The value placed on proposed purchases that are not part of an arm’s length transaction may not be relevant to the correct fair market value.
To help determine the fair market value and complete the transaction fairly for both parties the family law attorney must be able to obtain and review all business and financial records, financial statements and tax returns, and any other pertinent information for the preceding 5-7 years. Often an independent business appraiser or CPA will be retained to help in determining a credible and correct valuation of the business that a Judge or Jury will respect.
When the warning signs of a fractured relationship with your spouse have been surfacing for quite a while, many people are still caught off guard when their spouse asks for “The Divorce”. Although the husband may cause marriage problems, about 75% of divorces are initiated by the wife.
Usually one spouse is in shock/denial and may want to truly try to salvage the marriage. At times a spouse will try to blame the other spouse of being a quitter for wanting to be legally released from an unacceptable marriage. Often the non-initiating spouse is at the point where it is a relief that “The Divorce” question has surfaced and will readily agree that divorce is the right option.
Marriage and family is not an easy proposition at times and sometimes it is easier to just say goodbye and return to single life. But if you truly love your spouse and family you should look at the warning signs and try to change the direction of the marriage. Every relationship has its up and downs and needs new considerations at times. Take time to review your relationship and catch early warning signs that the marriage may be running off its tracks.
What are some serious signs that you and your spouse could be headed for a DIVORCE?
- Spouse interaction is more negative than positive: Marriage researcher, Dr. John Gottman researched the negative/positive effect and found that stable marriages have 5:1 ratio of positivity to negativity during conflict. Whereas unstable marriages have .8:1 ratio of positivity to negativity during conflict (Gottman & Levenson 1999). The acceleration of verbal criticism, nagging, and sarcasm in a relationship can be a definite sign that there is trouble in the marriage.
- Stonewalling when “you can’t break down the wall”: Stonewalling is a refusal to communicate or cooperate through body language or verbally shutting down when a situation with your spouse gets out of control and you don’t know how to handle the situation. This is very serious and may be the time to bring in a marriage counselor to help work through this problem.
- No Conflict Resolution: Marriage researcher, John Gottman, states that the lack of communication isn’t the marriage breaker but the lack of effective conflict resolution. This is a very serious problem when couples can’t reasonably work out their differences without causing injury to their relationship and finally quit communicating with each other to avoid more disagreement and conflict.
Other times one spouse or both have reached the point where every conflict has become a situation that must be “won” by bullying the other spouse into submission. There must be a “winner” but with this win comes mutual loss of respect, increasing distance and eventual withdrawal from the relationship.
- Emotional and Physical Disengagement and Disaffection: When couples can’t communicate, they will find different avenues for emotional engagements. Many neglected spouses will look out of the marriage at other values or priorities that helps them feel connected. A new religion, lifestyle, or job opportunity that the other spouse would never agree with can now be a reality for them.
Emotional Disengagement is usually accompanied by withdrawal of affection. Couples in a divorce situation consider themselves “fallen out of love” with their spouse.
- Sudden Change in Behavior? Has your partner suddenly started caring more about their appearance and spending more time “away from” home. Or more time is spent with their children and instead of “our marriage” everything is centered around “our children”?
Has your sex life disappeared? This is a good indicator that your emotional disengagement is advancing steadily and the spouses take no pleasure in each other. These are serious signals of rapidly eroding bonds in your marriage if not in a terminal state.
- Preparation for the “Single Life”: As people get tired of dealing with each other and the total indifference of the relationship, they will start living parallel lives and finally dissolve their personal relationship. Many couples heading for divorce will take up new habits and friends that differ from their spouses. New social networks will be centered around a single lifestyle.
Sounds like your current life with your spouse? DON’T GIVE UP YET! IT IS NEVER TOO LATE TO SALVAGE A FADING MARRIAGE! If people will realize that a marriage is not perfect and there will be conflict a certain percentage of time. Concentrate on working out a solution together to have a positive, loving relationship that can withstand the bad times. Just Remember: there was some spark that drew you to your spouse. Try to find it again or divorce.