Divorce for Business Owners in NASA

The fair market value of a business can have significant implications in a divorce and is very often a hotly contested issue. The divorce attorney must be familiar with both the rules involved in such valuations as well as the relatively small number of experts working in the area who can provide valuation opinions. Placing a value on a small ice cream shop 100% owned by the wife, for example, is very different than valuing the interest of a 10% partner in a large insurance agency. Different rules and discounts apply to each situation, and some experts are much more qualified than others to be involved in each case.

Knowledge, experience and having the right expert are all essential to a fair outcome. Working with a professional business evaluator, Enos Family Law helps clients to determine business values and works hard to help them try to reach agreements on their community property division. Click here for a more detailed discussion of Business Valuation in a Texas Divorce.

If John owns a small machine shop involved in a divorce, for example, once a value is placed on his business the real negotiations begin. In this example, there is usually no question that John keeps the business (unless an agreement is made to sell the company), but the value of his business must be balanced against other assets awarded to his wife or some portion of the value paid over time in payments to the wife.

Many small business owners pay personal, household expenses directly from the business accounts. This practice can affect the valuation of the business and increase what the business owner’s real income is and thus change child support calculations. A business owner who works many long hours (as is often the case), may be at a disadvantage in a child custody case simply because of those work hours. On the other hand, a business owner who is usually in control of their own schedule may be more flexible when it comes to spending time with the children. Overdue taxes can be an issue in some divorces involving small businesses, and the help of accountants or tax attorneys may be needed to assist the divorce attorney.

Representation of the spouse of a business owner typically involves more work because the other spouse often has control of information and financial data. Often, a payout plan is negotiated to provide income and compensate the other spouse for the community’s interest in the business. Things can get very tricky when both spouses work in the business, and sometimes one spouse must be ordered to leave the business while the divorce is pending.

The NASA area is in Harris County, so a NASA-area divorce is generally filed in the Harris County family courts in downtown Houston. One spouse must have lived in Texas 6 months and in Harris County 90 days to file. Texas requires a 60-day minimum waiting period before any divorce is final.

Where you file does not change what the business is worth — but it does set the framework your case runs on. Valuation, payout negotiations, and community property division all happen inside that framework, and knowledge, experience, and having the right expert are essential to a fair outcome.

Serving NASA Area from nearby Webster is our advantage — and yours. We're in these courts constantly and know the local judges, staff, and procedures that shape how a case really moves.

Where will my divorce be filed if I own a business in NASA?

The NASA area is in Harris County, so a NASA-area divorce is generally filed in the Harris County family courts in downtown Houston. One spouse must have lived in Texas 6 months and in Harris County 90 days to file. Texas requires a 60-day minimum waiting period before any divorce is final. The location of the filing does not change how the business is valued — the same Texas community property rules apply.

Will my NASA business have to be divided or sold in the divorce?

The fair market value of the business is often a hotly contested issue, and the business is often the family’s most valuable asset. Rather than a forced sale, a payout plan is often negotiated to provide income and compensate the other spouse for the community’s interest in the business. Working with a professional business evaluator, Enos Family Law helps clients determine business values and work toward agreement on the community property division.

How should I prepare for a divorce as a business owner in NASA?

Small habits matter: paying personal or household expenses from business accounts can affect both the valuation and child support calculations, and overdue taxes can complicate the case. Long work hours can cut against a business owner in a custody case, while control of your own schedule can work in your favor. Serving NASA Area from nearby Webster is our advantage — and yours. We're in these courts constantly and know the local judges, staff, and procedures that shape how a case really moves.