Divorce And Your Business: Who Gets What
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.
The Emotional Stages of Divorce
Marriages do not break up overnight. There is not one incident or one party that ends a marriage. Your emotional break up usually extends over several years with the marriage parties continually at different stages in the emotional process.
Just remember,” no marriage is totally bad nor totally good!” Do not go fault finding! Both partners stay in a marriage for a longer period of time because there are good things about it. Now the couple is divorcing because the “bad” things make the marriage not work anymore.
A divorce survey by Slater and Gordon Law Firm (survey of 1000 divorced people) came out with some very interesting results:
- The average person will spend about 2 years thinking about a divorce before they file.
- During this time the average person spends 18 months really trying to fix their marriage and working to save it.
- 76% try to fix their marriage problems before deciding on a divorce
- 53% discuss divorce with someone besides their spouse before filing
- 36% spoke with an attorney before deciding on a divorce
What are the emotional stages a couple will experience leading up to a divorce?
1. Disillusionment of one / two marriage partners ( not verbalized to other partner)
- Continued, ongoing feelings of discontent, pent up resentments and breach of trust
- Emotional feelings of anxiety, anger, denial, depression ,fear, grief, guilt ,and love
- Real problem but unacknowledged
- Developing greater distance, lack of mutuality, and increase in arguments
- Consideration of pros and cons of possible divorce and/or separation
2. Verbalized Dissatisfaction ( no legal action yet)
- Feelings of anguish, doubt, emotional, grief, guilt, relief, and tension after expression of discontent is now in the open!
- Marriage counseling and giving “one last try” for the marriage
3. Decision to Divorce ( no legal action yet)
- Feelings of anger, anxiety of the future, guilt, resentment, and sadness
- Other partner now in emotional stage one and both parties feeling victimized by each other.
- Realizes this decision is usually not reversible
Divorce Decision Action (the legal process begins)
- Feelings of anger, blame, shame, fear, and guilt
- Emotional and physical separation
- Going public with decision to family and friends
- Dealing with the “Children Problem”. No way around this one.
- Hiring an attorney and start the divorce process
4. Acceptance of Divorce / Single Life ( during the legal process or after)
- Many life adjustments: emotional, mental, and physical
- Realization that the marriage was not fulfilling or happy
- Dealing with your children and helping them to understand they are loved and did not cause the end of the marriage
- Work on developing the “new single you”, new identity and a plan for the future!
This emotional roller-coaster may take years to complete, but keep focused and you will get through it. Surround yourself with competent legal professionals who will help you through this life changing event.
Just remember this: the divorce emotional stages are a normal occurrence when going through a divorce. Outside of a death, divorce is one of the most life changing events in an individual’s life. This list is very basic and you will probably add many other emotions on to the list You are not alone. It is a grieving process and you will recover.
Texas Standard Visitation Schedule – For the Holidays with your Children!
Now is the time to review your Holiday Visitation Schedule with your children. Here is a reminder of the current Texas Family Law Code’s Standard Possession Order for the Holidays.
Texas Family Law Code’s Standard Visitation Guidelines for Thanksgiving:
The possessory conservator or non-primary conservator shall have possession of the child in odd-numbered years, beginning at 6 p.m. on the day the child is dismissed from school before Thanksgiving and ending at 6 p.m. on the following Sunday, and the managing conservator shall have possession for the same period in even-numbered years; The Holiday schedule will always override the Thursday or Weekend schedules.
Texas Family Law Code’s Standard Visitation Guidelines for Christmas Break:
The possessory conservator or non-primary conservator shall have possession of the child in even numbered years beginning at 6 p.m. on the day the child is dismissed from school for the Christmas school vacation and ending at noon on December 28, and the managing conservator shall have possession for the same period in odd-numbered years.
The possessory conservator or non-primary conservator shall have possession of the child in even-numbered years beginning at noon on December 28 and ending at 6 p.m. on the day before school resumes after that vacation, and the managing conservator shall have possession for the same period in odd-numbered years; The Holiday schedule will always override the Thursday or Weekend schedules.
The Holiday Season should be a happy family time. Many times, emotional issues from the result of the break-up affects a family which causes the joy of the season to be overshadowed by unhappiness and despair! Children need to have structure in their Holiday Visitation Schedule to ensure that they will be able to see both parents and share the joy of the season with their entire family. The children are often the ones who suffer when the Holiday Visitation arrangement goes awry.
Unfortunately, many parents may wait too long to confirm visitation plans for this upcoming holiday season. If you cannot reach an agreement regarding visitation or believe you may be deprived of holiday visitation by the other parent, now is the time to contact an attorney. Time is short and Courts are already starting to overload with future visitation problems for the Holiday Season.
The best gift a child can experience for the Holiday Season is an early proactive arrangement of all holiday plans between both parents. Everyone needs to know dates and times for visitation with both Mom and Dad. This Holiday Season vow to keep your child out of the middle of any family conflict and start to develop new holiday traditions with your child and family. Many parents have new relationships/marriages and other children in the family group. The new holiday traditions should include everyone and be a bonding experience for years to come.
Call Us. We Can Help!
Nacol Law Firm P.C.
Dallas Family Law Attorneys
(972) 690-3333
The Special Needs Child and Parents Going Through a Texas Divorce
Parents of a special needs child face many challenges while raising and nurturing their child. Many marriages falter and end in divorce due to the stressful demands required of parents with a special needs child. The stressors and emotional pressure that exists prior to the initiation of a divorce frequently accelerates during the divorce process. A special needs child is seriously affected by their parental decisions made during a divorce.
A divorce does not bring out the best in any couple. In the case of a special needs child, thoughtful and prudent care of the child should always be the main objective of both parents so the child knows that he/she is loved by both parents and is not at risk. A special needs child will experience serious emotional and behavioral problems during this time becoming more vulnerable and not knowing what is happening in life. The child is often afraid that he/she is losing Mom and Dad due to false and misplaced self-imposed guilt.
Many parents have already struggled with questions surrounding their child’s special needs such as correct diagnoses or the validly of treatments for their child’s conditions. During serious custody battles, such concerns become the focus of intense parental conflicts.
Some of the more serious concerns are:
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A child’s reactions to overly permissive or excessively rigid parenting
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Use and dosage of prescribed medicines for a diagnosed problem
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Proper diagnosis being made by a competent professional
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Whether a professional label and diagnosis will be noted in school records
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Whether a child be placed in special education classes for leaning or emotional disabilities. Whether one parent is so occupied with the special need child that the parent has lost perspective on how to best manage the child
Often one parent accepts a child’s diagnosis given by the specialist and actively advocates for the child, while the other parent may remain in denial of the child’s obvious needs. Which parent is actually and consistently working in the child’s best interests?
Special efforts are needed when setting up possession schedules for your special needs child. Both parents must understand the nature of the child’s physical/emotional problems and the level that the child can function. When the child spends time in each parent’s home, both parents must reasonably work together and agree on a parenting approach that addresses the child’s needs.
When parents cannot agree upon the child’s actual needs and course of care, the court may appoint a specialist to conduct a complete evaluation of the child. From this evaluation the specialist will offer specific opinions to the parents and court regarding the nature of the child’s special needs and specifically address these needs.
In a divorce involving a special needs child many joint decisions are critical to and impact a child’s self-esteem. Other family issues and problems may need to temporally be put aside between the parents to assure a special needs child will fully receive the attention needed. We suggest that in the divorce decree a parenting plan be included setting out specific provisions for the care of the child.
Some suggested items to include in this Plan would be:
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Can the child be cared for in the home or an outside facility and how would these costs be covered?
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Medical, educational, and therapeutic interventions and decision making authority
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Treatments not covered by insurance. Who is responsible as to the authority and cost?
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Working with the child’s school to implement plans for the educational needs of the child.
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Care decisions on parents’ ability to work outside the home with a special needs child
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Handling of Lifetime care and support and the cost necessary for the special needs child
Texas Child Support Modification Within Three Years
Child support is one of the most heavily litigated issues in all of family law. To increase or decrease payments there are specific requirements that must be met to modify a previous child support order. Per Tex. Fam. Code § 156.401 the requirements necessary to modify a prior child support order are:
- The circumstances of the child or an affected party have materially and substantially changed; or
- Three years have elapsed since the order was entered or last modified, and the amount of child support differs from the statutory guidelines by either 20% or $100.00.
The second requirement is self-explanatory. The three-year limitation to file for another modification is for the benefits of the Courts. If there was no three-year waiting period to refill, then every conservator would constantly attempt to modify child support, thus creating endless litigation for clogging the Courts’ dockets.
The first requirement needs more explanation. A Material and Substantial change in the circumstances of the child or an affected party must be clearly shown at trial. Many Courts are meticulous in making the determination of what a Material and Substantial change is regarding the child and the affected party to insure this requirement is not abused for excessive litigation.
To prove a Substantial and Material change in circumstances, a conservator must show evidence at the final hearing of:
- The financial needs/expenses at the time of the divorce or prior modification for the children and the person affected, and;
- The financial needs/expenses at the time of the request for the modification.
If evidence of financial needs/expenses are not submitted and proved regarding both (1) the prior divorce/modification and (2) the recent modification, then no Substantial and Material change can be adequately proved. Further, if the request for modification of child support is predicated solely on one conservator’s increase in earning capacity, absent other compelling evidence, the change in circumstances is not Substantial and Material. Interest of L.R., 416 S.W.3d 675, (Tex. App.—Houston [14 Dist.] 2013, pet. denied.)
If one conservator decides to file a modification of child support within three years just because the other conservative received a better job, it may be dismissed. At the end of the day a Court has broad discretion on determining what is Substantial and Material and may allow the case to be heard and give an unfavourable ruling, but if that occurs you will have the ability to appeal the judgment and request attorney’s fees. It is important to know in any family law case the Judge has extremely broad discretion and interprets case law in a way that he deems fit using the Best Interest Test.
If you are a conservator that meet these requirements above and wish to increase or decrease the child support obligation, be sure to hire an experienced attorney. Nacol Law Firm will always fight for you and your children’s best interest.
Julian Nacol, Attorney
Nacol Law Firm, PC
Call (972) 690-3333
NACOL LAW FIRM P.C.
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Suite 1190
Dallas, Texas 75231
972-690-3333
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Attorney Mark A. Nacol is board certified in Civil Trial Law by the Texas Board of Legal Specialization