How to Determine the Value of a Business for a Texas Divorce

 Posted on December 31, 2025 in Divorce

When you are going through a divorce, the assets you and your spouse obtained during the marriage will likely have to be divided. This can be especially stressful for business owners, who may worry about losing their business or a large part of it. If you have a business that could be affected by your divorce, it is important to work with an experienced Frisco, TX divorce attorney who can help you protect it as much as possible.

One important step in deciding what happens to a business in a Texas divorce is getting a business valuation to determine how much it is worth. At Moore Family Law, P.C., our solo practitioner can provide you with one-on-one assistance to help protect your company.

Is My Business Community Property?

In a Texas divorce, one of the first questions is whether the business counts as community property or separate property. Community property is generally anything either spouse earned or bought during the marriage. Separate property usually includes things owned before the marriage, gifts, and inheritances.

Texas law under Texas Family Code Section 3.003 says that everything either spouse owns at the time of divorce is presumed to be community property. If a spouse wants to treat a business (or part of it) as separate property, there must be clear proof.

If the business was started during the marriage with marital money or joint efforts, it will likely be treated as community property. If it was owned before the marriage, its original value may be separate, but appreciation during the marriage can still create community property issues if a spouse contributed to its growth.

Different Ways to Value a Business in a Divorce in 2026

Not all businesses are the same. For example, a business that sells stock on the public market may be valued very differently from a small family business. Your attorney can help you work with a financial expert to choose the best way to value your business. Some common methods include:

• Market value: If a business has shares that are publicly traded, one way to find its value is to add up the total value of the shares you own on a certain date. Market value can also be found by looking at recent selling prices of similar businesses.

• Book value: A business’s book value is based on everything it owns (assets) and everything it owes (liabilities). This method may work well for businesses that depend a lot on products, inventory, and equipment. 

• Value based on revenue or earnings: Some businesses depend mostly on the skills and reputation of the people who work there. In these cases, it may make more sense to value the business based on its expected income and profits in the future.

The results of a business valuation are important. They can be used as evidence in negotiations or in court when deciding how to divide community property. Moreover, a thorough valuation can help you decide what to do with the business. Some spouses choose to sell the business and split the profits. In other cases, it may be better for one spouse to buy out the other or for them to keep owning the business together.

Which Business Valuation Method Is Best?

There is no single valuation method that works best for every business. The right approach depends on what kind of business is involved and what records are available. For a company with public shares, market value might make the most sense. For a business that owns a lot of equipment or inventory, book value or liquidation value may be more helpful. 

Strong legal and financial advice can help match the method to the business. The goal is a fair, well-supported valuation that both sides can understand and that a judge will respect if the case goes to court.

Disputes About Business Valuation in Your Divorce

Even with a professional valuation, spouses often disagree about what a business is worth. Many couples first try negotiation or mediation (working with a neutral third party). Those options allow more control, can be more private, and often resolve valuation disputes faster and with lower cost.

If an agreement is not possible, the issue may go to litigation. That means more time in court, paying for expert witnesses, and waiting for a judge to decide. Litigation can protect important rights, but it also adds stress, expense, and delay, so it is usually wise to treat it as a last resort. 

Contact a Frisco, TX High-Asset Divorce Lawyer

At Moore Family Law, P.C., we help clients resolve disagreements about business interests and other issues in high-asset divorce cases. We can work with you to protect your property and reach a divorce outcome that supports your career and financial future. For an initial consultation with a Collin County, TX divorce attorney, call us today at 214-764-8033.