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  • Divorcing = Questions

    Hi All,

    I am divorcing my husband.

    Texas is a community property law, which means he's entitled to half my biz assets and half my biz debts.

    Will anyone tell me about their experience in this regard?

    I have had Dennis at WnT give me a valuation on the rig. My lawyer is saying it's considered a Goodwill business. After having looked at the definition of this, I agree, but it doesn't stipulate that unless the potential buyer were to service my exact service areas, the client list, the Goodwill, is nonexistent. (I am not planning on selling)

    Thanks in advance for your input.

  • #2
    Is he actually going to go after half your business? Cause he's also gonna half to pay half your van loan too.

    Just because it IS community property, doesn't mean it HAS to be split up. If you are going to have an amicable divorce, you can just have him sign off.

    Comment


    • #3
      As a consultant I have definitely had experience with groomers divorcing, and community property.

      What I have seen with businesses involved, is that in your case sure he has half interest as community property, but the judge looks at the other assets to weigh out the situation. What you need to make clear is that as a divorced person you are dependent upon the income from the business, AND THE BUSINESS CANNOT RUN WITHOUT YOU. That latter is key based on what I have seen. So the judge says, perhaps, the business and its assets are totally yours for that reason, but may consider that when valuing any alimony to you. I have seen homes have to be sold and net from the sale divided. So a lot there depends upon what else is in the pot, but unless your husband is a groomer, the business is entirely dependent upon you so most likely you can keep the business and its assets if you want (in a reasonable world.)

      Goodwill valuation. Well there are certified appraisers that do such appraisals that hold up in court, and that is usually needed. However, mobile businesses goodwill (which essentially covers the value of the business less the rig) is not so high in mobile businesses compared to medium and especially large salons. Back in the Eighties our family business of some notoriety of 25 years goodwill was professionally certified as worth 1 times the gross income of the past year. Appraisers strictly use tax returns to verify their numbers. It's not easy to sell mobile businesses either, vans and trailers yes, clientele, more difficult but does happen but getting more than $10,000 (not counting rig) is very difficult for a one person business in mobile. At the most I would GUESS (even though you probably could not sell it for this amount) a valuation for a superior performing business of MANY years would be one times gross, but often it is one times NET OPERATING INCOME instead, plus used value of rig.

      Hopefully this could be a moot point and you keep the business and rig to support yourself, and other property is divided fairly, especially if husband has a job. But alimony (not counting any kid support if applicable) could be less from him because you are self employed and kept the business. So hard to say the mind of every judge.

      This is all very general though, I think the best answer here is that a mobile business beyond the used value of the rigs should not hopefully be over valued. Range $5,000 to $10,000 max based on what I see mobile groomers able to get (this is the value over the rig value). I would not try to argue that the number is zero, that just won't be accepted well. It's not unusual to see 10 year plus shops get way more, and 20 year shops get formal appraisals hundreds of thousands as my parents did with their business when they sold it, and verified by 3 appraisers. There is a big difference between mobile and stationary, but I am not an appraiser but can share what I have seen things sell for. And it is all the more so for you because you are a single person business, right? Without you, that goodwill is likely to lower faster than an established shop with staff that can run on under new ownership (maybe not great, but it will run).

      Hope this helps and resolves OK for you.

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      • #4
        When I worked in a shop the owner got divorced. She kept the business, they split the house, and each kept a car. He didn't want the business.

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        • #5
          GlassOnioin what is happening now?

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          • #6
            We have a bather going through divorce and he showed up angry to talk with her. I was able to deflect him, she went outside. Ugh, I hope I don't need to go through the work of getting protection orders.

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            • #7
              Brit....be careful. Check what your rights are to keep him off the property.
              More women are murdered at their work place then anywhere else.

              Stay safe for both of you.

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              • #8
                Please be careful and I would talk to her about the same. This just happened in the small town I grew up in. The ex boyfriend showed up at the hair salon were his ex girlfriend worked. Kidnapped her, took her to her fathers house, and killed her and her dad. Then he left and went to his ex wife's work and killed her too, before going home and killing himself. http://claytodayonline.com/stories/t...-unfolded,2091


                Sent from my iPhone using Tapatalk

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                • #9
                  OH MY I am taking this in very seriously, thanks for sharing.

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                  • #10
                    How are you doing? I've been divorced in Texas and it is a circus if everyone can't agree to splitting the assets. Please let us know how you are doing and if there is any way another groomer can help you through a difficult spot.

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                    • #11
                      Good BDL I was wondering same thing.

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                      • #12
                        Hope it is going OK for you GlassO

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                        • #13
                          GlassOnion has been around here awhile...not answering now...shows you what divorce is all about...but I am sure she will be back.

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                          • #14
                            OK.

                            Full disclosure: I am in recovery and had 10 years clean and had a 5 day relapse in March which caused me to decide to go to treatment for 30 days.

                            Long story short.

                            As a community property state, technically half is his. No matter what.

                            The value of the business has come under much contention.

                            He thinks my business is worth 2.7 million dollars!! LOLOLOL.

                            He is trying to use this figure as a way to weasle out of my half of the equity in our home (to which I contributed $17K towards, when we first bought it...including paying off a $7600 credit card bill on a CC in his name only).

                            We went to mediation in late June and it stalled because he insisted on this unrealistic and laughable number. My lawyer and I told him to kindly get it valued, on his own dime (the specialist who does this charges $5k-$10K).

                            He is still stuck on stupid refusing to see that the only thing of value, once I am removed from the equation (and I now see that his regard for me is so little that he thinks little Elves and Faeries and the Van itself have built the business: fostered relationships with clients, groomed the dogs, cleaned the van, attended all the workshops and symposiums, dedicated decades to learn canine behavior and as a CVT, and all the minutiae that we carefully put into our craft and businesses) , are the hard assets and that is really only the van.

                            He and his lawyer cannot seem to understand the nature of our business is such that my client list is of NO value to a groomer even 25 miles away from me. Another gal is going to see the listing for the van, buy it, scrape the graphics off and put her own on, get her own website and logo and hit the road. The client list is of little value to a local competitor. Brick and mortar is a lot different, but even they see a loss in clients when a new owner takes over.

                            Additionally, he doesn't understand that finding a buyer who can buy the van outright puts another delay and layer of complexity into the equation.

                            So, his woodenheadedness is going to earn him the chance to see how a judge reacts when he learns that my soon-to-be-ex: changed my password to my desktop so I couldn't pay quarterly sales taxes in time, refused to give me letters from the Texas Workforce Commission (I have an employee), changed the blue tooth codes in the van, didn't help my groomer during the week I wasn't allowed a phone in treatment and couldn't make appointments, deleted clients, deleted client information, deleted appointments, spied on my business phone but told me he wasn't and hacked into my email account. (there's a lot more, but this is the stuff he did that's directly related to my business).

                            He wants to "give me his half of the business" but has forgotten about the debt associated with the van and that half of that is his, too.

                            That is it as of right now.

                            PS
                            I picked up my 6 months clean key tag on the 18th.

                            Comment


                            • #15
                              I am proud of you Onion! It takes a strong person to admit they had a problem and a stronger person to overcome the problem.
                              Sorry to hear your soon to be ex is being an a$$!!!!!
                              Glad to see you back on forums. Are you still grooming in your mobile atm?
                              Ain't always easy to stand up for what is right.

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