Category: Divorce Attorneys

Do I Still Need A Divorce Lawyer When Choosing Mediation?

In a best-case scenario, clients of divorce law firms seeking a divorce can work together to resolve their differences and make critical decisions without the prolonged and often traumatic process of going to divorce court.

Mediation done with an experienced divorce mediator is an option many willing spouses choose for getting through those decisions, whether related to property dispersal, child custody, or anything else. 

Is A Divorce Lawyer Needed When Using Mediation?

When choosing mediation, many question whether they still need to hire divorce lawyers, too.

Although there is no rule that states someone must do that, there are many reasons why working with divorce attorneys even when choosing mediation is the best idea.

The best way to understand why is to learn the difference between what each professional does to help clients through their productive and amicable divorces.

Divorce Mediators and Divorce Lawyers

Primarily, the difference between divorce lawyers and mediators is that lawyers are professionals who offer legal advice that is in their client's best interest and follows the law, while mediators focus on resolving questions and disputes between the spouses as they try to separate themselves and make essential divorce decisions.

In this case, the happy medium is when mediators help clients make their decisions which divorce attorneys find to be equally acceptable in how they affect their clients.

Neither professional can force a client to agree to any one decision, but it is the attorney’s job to point out as decisions are being discussed and made what is in their client’s best interest and what isn’t.

This is why mediation usually occurs with the two spouses separated, but each is able to discuss with their divorce lawyers as negotiations are happening. 

How Are Divorce Mediators and Divorce Attorneys Different?

A mediator’s job is to guide spouses through the decision-making process and act as a go-between to help them compromise without the fighting or distractions that can happen when spouses are face-to-face.

Mediators do not advise clients; instead, these experienced professionals who have backgrounds in marriage counseling, psychology, and similar fields keep communication on track so that negotiations can move forward.

On the other hand, a divorce lawyer’s job is to be the one to offer advice to their client with regard to the negotiations being presented.

Lawyers with divorce law firms communicate only with their clients, while mediators communicate with both spouses. 

In Summary

Ultimately, the decision of whether to work with a divorce law firm even when knowing from the start that mediation is the goal is a personal one, but it is highly recommended.

Spouses should still have the representation of an experienced divorce attorney for their benefit to protect their own interests while attempting to compromise and be more amicable.

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.