How Do No Fault and Uncontested Divorces Differ in Texas?

Spouses seeking a divorce in Texas can file in multiple ways.

Naturally, a contested divorce where spouses hire divorce law firms to help them resolve disagreements and serious problems between the spouses can be difficult.

An easier route is filing uncontested or no fault divorces when spouses agree to work together on the resolution.

Though many people may think they are the same thing, no fault and uncontested are slightly different.

No-Fault Divorce Parameters

In either case, no fault divorce lawyers require only that spouses be willing to work together with them to come up with an uncontested resolution that can be presented to the family court for divorce approval.

Doing so begins with understanding what no fault and uncontested divorces are and how they differ.

No fault divorces are those in which a couple who wishes to no longer be married can file their papers under the grounds of insupportability and have the divorce granted.

Neither spouse must admit to any wrongdoing and no party is at blame for the situation.

They can work with divorce law firms to come up with a divorce agreement that works for them and involves the amicable dividing of marital assets, resolve other pertinent issues, then present their agreement to the courts for approval.

Uncontested Divorce Parameters

Uncontested divorces are slightly different than no fault divorces in that there may be grounds for divorce presented, but again, the couple and their no fault divorce lawyers agree to work together on a viable agreement to present to the family court.

A spouse can file with grounds in an uncontested divorce.

As long as the other spouse agrees with those grounds and agrees not to contest them or the divorce itself, divorce law firms can help these clients get through their uncontested Texas divorce as painlessly as possible.

No-Fault and Uncontested Divorces Are Somewhat Different

Where the confusion tends to arise is that while all no fault divorces are uncontested divorces, not every uncontested divorce is a no fault divorce.

Still in the grand scheme of things, both no contest and uncontested divorces are preferable and much easier to work through than contested divorces.

An experienced no fault divorce lawyer can help couples through their divorce, even if there are grounds, to find the most favorable solution when there is agreement as to why the divorce is happening and how to separate the relationship and property.

Seek an Experienced Divorce Lawyer for Help

For Texas residents seeking an uncontested divorce even under certain grounds, divorce lawyers experienced with uncontested and no fault divorces can help.

Reach out to a reputable divorce law firm today.

How does a Business Get Divided During a Texas Divorce?

In a community property state like Texas, all wealth known to be considered marital property by divorce attorneys is subject to being divided up and split between the two spouses.

This is easier to do with bank accounts, physical property, and other types of assets but can be extremely difficult to do when one or both spouses own a business.

If the business came about during the marriage, regardless of whether it is owned by one or both spouses, divorce lawyers must advise on the proper way to disperse the business as part of the community property owned by the couple.

How Can You Split A Family-Owned Business?

Family divorce attorneys advise that there are two ways to handle a business that becomes part of a couple’s marital property in a divorce:

  • The business can be liquidated altogether, with each spouse keeping their portion of the sale.
  • The business can be valued and one spouse buying out the other spouse’s portion so that they still get their portion of those assets.

Valuing The Business

In either case, the distribution of a business that is marital property begins with agreeing on the value of that business.

Valuing a business is much easier said than done, as any divorce attorney will attest.

There are multiple methods that can be used to do so and depending on the size and scope of the business, might involve bringing in experts to help.

According to family divorce attorneys, business valuation can be determined using one or a combination of these methods:

  • Fair Market Value - The price the property and assets can bring if offered for sale on the open market.
  • Intrinsic Value - The actual market value of the property and assets, including potential value, aside from what the current fair market value alone is.
  • Book Value - Valuation based on earnings, assets, and liabilities, and projected income.
  • Owner Value - Any additional value held by the owner including various intangible values like workforce value, process values, and more.

During the division of marital property, divorce attorneys and financial experts will usually apply more than one of these valuation methods while also considering other factors such as excess earnings, discounted earnings, and adjusted net assets, each of which can add or subtract value from the end dollar figure of a business’ worth.

Ultimate Goal is Sale of the Business

The goal, in the end, is for divorce lawyers and their clients to agree on the value of the business, both monetary and intangible, and then assign a dollar amount to these different values if the business is to be kept, with one spouse reimbursing the other for their half of the ownership value.

When the business is instead sold, the spouses split the money earned as required by Texas community property laws.