In today’s unpredictable economy there has been a continuing growth of small businesses and a substantial decrease of existing established businesses in Texas. In the regrettable instance of “Divorce” how may the “Family Business” be divided between a dissolving couple to reach a fair and reasonable result for both parties?
In such a situation, an experienced Family Law Attorney with the aid of economic experts becomes critical in establishing a fair and equitable price on the business, consulting the client on their rights relative to the business, helping with negotiations for a business entity to be sold, transferred, or appraised, and making sure the client’s rights are protected in the transaction.
The most important fact to establish is a credible determination of the true fair market value of a business and how the business or the business assets are to be divided between the spouses in the divorce.
The dividable interest is determined by the fair market value of the business. This value is the price a willing buyer would pay and a willing seller would give in a purchase with both buyer and seller having reasonable knowledge of the relevant facts of the business and neither being under pressure to buy or sell the business.
During a Divorce, the concept of a credible hypothetical buyer and seller may be determative and very complicated. Going through a divorce is difficult enough, but fairly determining the true value of the business in the process can be complicated and sometimes expensive. There are always two different ideas in every divorce and the family business will bring out the some very serious opinions of just what is the “fair market value”! Ideas may range from too high in today’s economy to too low base on emotional attachments, complicated further by feelings as to possible other family members who own or claim parts of the business. The value placed on proposed purchases that are not part of an arm’s length transaction may not be relevant to the correct fair market value.
To help determine the fair market value and complete the transaction fairly for both parties the family law attorney must be able to obtain and review all business and financial records, financial statements and tax returns, and any other pertinent information for the preceding 5-7 years. Often an independent business appraiser or CPA will be retained to help in determining a credible and correct valuation of the business that a Judge or Jury will respect.
Many professions create impositions on conservators making a standard possession order inapplicable and unworkable. The Court may deviate from a standard possession order if the order is inappropriate or unworkable in reference to the schedules of both the conservators and the child. Unique professions and irregular school schedules for children allow the Court to have flexibility to deviate from a standard possession order that is in the Best Interest of the Child. There are multiple ways in which the Court may depart from a standard possession order to fulfill the needs of all parties involved with the custody of the child.
First, the Family Code § 153.254 states that the Court will be allowed deference to modify the standard possession order if work schedules of either conservators or the school schedule of the child is irregular. The Court must attempt to narrowly tailor the modifications to keep the new possession order as similar to the standard possession order as possible. This instance most commonly occurs when the Managing Conservator and the Possessory Conservator cannot reach an agreement and one of the two Conservators has a unique profession such as a firefighter, police officer, or airline pilot. The working hours of these jobs allow the Court to modify the standard possession order even if both of the parties do not comply with the changes. The modifications must be made only if it is in the Best Interest of the Child.
Secondly, the standard possession order may always be modified if it is by the mutual agreement of both the Managing Conservator and Possessory Conservator. Family Code § 153.007 is the Agreed Parenting Plan Statute and allows for both parties to agree on a standard possession order for the child. This statute was passed to promote amicability in settlement for child custody issues and to give flexibility to the parents if they are willing to agree on custody terms. The Agreed Parenting Plan must be in the Best Interest of the Child for the Court to approve. If the Court grants the Agreed Parenting Plan then the Managing or Possessory Conservator will have a remedy as a matter of law for any violation of the agreement committed by either party.
Finally, both Conservators may enter into a Mediated Settlement Agreement under Family Code § 153.0071. A Mediated Settlement Agreement is the only time in which the Court will NOT look at the Best Interest of the Child when granting the custody agreement.
The Mediated Settlement Agreement § 153.0071 must be:
- In bold, underlined, and capital letters that the agreement is NOT REVOCABLE
- Signed by Both Parties to the agreement
- Signed by the lawyers (if represented) of each party
The Mediated Settlement Agreement is binding and not revocable so if the Conservators wish to go this route they must understand that what is in the agreement will be held as binding. This method can be used to modify or change a standard possession order and the Court will not look at the Best Interest of the Child regarding the agreement, unless there exists a credible threat of domestic violence.
These are the methods in which a unique possession order may be obtained to accommodate irregular schedules or working hours of both the conservators. Any possession order must be correctly drafted and all future contingencies must be accounted for. An experienced lawyer must be contacted to safeguard an individual’s custody rights of their children and to make sure that a fair custody arrangement is obtained.
A temporary restraining order, commonly known as a “TRO” is used in family law to place injunctions without a full hearing on one or both parties. These injunctions prohibit specific actions that could endanger or prove damaging to the property in a divorce or the children of a divorce. You should have an idea on what the process entails.
A TRO is governed by Texas Rules of Civil Procedure Rule 680 and Texas Family Code § 150.001. If your spouse wishes to file a TRO that immediately excludes you from possession of or access to your children, a notice of this hearing must be given to you prior to the court date. The only exception to this is an Ex-Parte meeting with the judge, which means that only your spouse or her attorney will be present at the preliminary hearing. The judge may order a TRO Ex-Parte only if the TRO clearly demonstrates from specific facts shown by affidavit or by a verified complaint that immediate and irreparable injury, loss, or damage will result to the applicant or children before notice can be served and an actual hearing.
If you are on the receiving end of TRO and it prohibits you from access to your children, there are some things to keep in mind.
First: a TRO has a time limit, which is 14 days. After 14 days the TRO may be extended by a judge only once for an additional 14 days. Thus at most this TRO may only last 28 days’ absent agreement to an additional extension. A Judge does have the discretion to extend the TRO more than once if it is uncontested (you do nothing or do not appear).
Second: A TRO is NOT a Protective Order. This means that the police cannot kick you out of your house or forcibly arrest you for violating a TRO, absent any related criminal conduct. There are consequences for violating the TRO but not criminal consequence. You may be found in contempt of court by the Judge who ordered the TRO and forced to pay fines or be held to more severe sanctions. Violations will not be good for your case if you intentionally violate.
Third: A TRO must have a signed and notarized Affidavit or a verified pleading attached to the motion. If the opposing counsel did not follow these procedures the order may upon motion to dissolve be found void due to violation of the Texas Rules of Civil Procedure.
Fourth: You cannot practically appeal a TRO because it may only last for at most 28 days, if contested. Once you are served with the Ex-Parte TRO, you may request a motion to modify or dissolve the TRO after giving your spouse 48-hour notice and seek attorney fees if the filing was false or frivolous.
TRO’s are civil injunctions that are usually given without notice only if immediate and irreparable injury, loss, or damage will happen. The proof rules are more relaxed in Family Law Cases. Specific TRO procedures can differ in all counties and in different courts so make sure the check online the rules of each specific jurisdiction.
TRO’s only last 14 days and cannot be enforced by police officers, absent related criminal activity. Do not be distressed if you are served a TRO one day while you are battling your spouse for child custody or property. Take a deep breath call your attorney and set a hearing to modify, vacate or dissolve the TRO.
Many counties have standing orders that issue and are effective as to both parties upon the filing of a Family Law Proceeding. Read such mandatory orders before you file your case.
Holidays 2020 Visitation with your child could be difficult since “Normal” life for families has changed greatly with the threat of the Covid19 Virus. Now is the time to review your Holiday Schedule for visitation with your children and we suggest you review the specific provisions of your order concerning this 2020 Holiday Visitation.
NOTICE: In Texas, March 13, 2020, the Texas Supreme Court issued an Covid19- Virus Emergency Order: divorced /single parents should go by the originally published school and visitation schedule in their current decree. This includes Holiday Visitation Schedules. The Counties of Dallas, Collin, and Denton shortly after came out with standing orders regarding Exchanges relating to possession and access to children considered “an essential activity’.
The Holiday Visitation time is the most modified area in the Standard Possession Order.
Here is a reminder of the current Texas Family Law Code’s Standard Possession Order for the Holidays.
Texas Family Law Code’s Standard Visitation Guidelines for Thanksgiving:
The possessory conservator or non-primary conservator shall have possession of the child in odd-numbered years, beginning at 6 p.m. on the day the child is dismissed from school before Thanksgiving and ending at 6 p.m. on the following Sunday, and the managing conservator shall have possession for the same period in even-numbered years; The Holiday schedule will always override the Thursday or Weekend schedules.
Texas Family Law Code’s Standard Visitation Guidelines for Christmas Break:The possessory conservator or non-primary conservator shall have possession of the child in even-numbered years beginning at 6 p.m. on the day the child is dismissed from school for the Christmas school vacation and ending at noon on December 28, and the managing conservator shall have possession for the same period in odd-numbered years;
The possessory conservator or non-primary conservator shall have possession of the child in even-numbered years beginning at noon on December 28 and ending at 6 p.m. on the day before school resumes after that vacation, and the managing conservator shall have possession for the same period in odd-numbered years; The Holiday schedule will always override the Thursday or Weekend schedules.
The Holiday Season should be a happy time for but for families split by divorce, the emotional issues from the result of the break-up on the affected family can cause the joy of the season to be overshadowed by unhappiness and despair! Children need to have structure in their Holiday Visitation schedule to ensure that they will be able to see both parents and share the joy of the season with their entire family. The children are often the ones who suffer when the Holiday Visitation arrangement goes awry.
Unfortunately, many parents, wait too long to confirm visitation plans for the upcoming holiday season and with the current Covid19 Virus Pandemic, the family situation. If you cannot reach an agreement regarding visitation or believe you may be deprived of holiday visitation by the other parent, now is the time to contact an attorney. Time is short and Courts are already starting to overload with future visitation problems for the 2020 Holiday Season
The best gift of the holiday a child can experience is an early proactive arrangement of all holiday plans so everyone knows dates and times for visitation with both Mom and Dad. This Holiday Season vow to keep your child out of the middle of any family conflict and start to develop new holiday traditions with your child and family. Many parents have new relationships/marriages and other children in the family group. The new holiday traditions should include everyone and be a bonding experience for years to come.
Call Us. We Can Help!
NACOL LAW FIRM P.C. , Dallas Family Law Attorneys (972) 690-3333
The presumption of fatherhood in Texas is strong, and positively impacts a father’s claims upon his children. Without the presumption of fatherhood, a father would face significant barriers in asserting his rights. The presumption of fatherhood supports access, rights, and duties, allowing the father to assert his right to help raise his child as he deems fit.
The presumption of fatherhood is determined in the Texas Family Code 160.204 and states that a man is presumed to be the father of a child regardless of genetic testing in the following circumstances:
- If the man is married to the mother and the child is born during the marriage;
- If the child is born before the 301st day after the day the marriage is terminated by death, annulment, invalidity, or divorce;
- If the man is married to the mother before the birth of the child in apparent compliance with the law;
- If the man married the mother after the birth of the child in apparent compliance with the law and voluntarily asserted his paternity of the child by:
a. The assertion in a record filed with the vital statistics unit
b. The man is voluntarily named as the Child’s father on the child’s birth certificate or
c. He promised in a record to support the child as his own occurrence
5. The man during the first two years of the child’s life resided in the household in which the child lived and the man represented to others, (held out) that the child was his own.
These five factual series support the presumption of a father without actually filing a Suit Affecting Parent Child Relationship.
Only the 5th element pertains to men that are not married to the mother of the child. A man that is not married most likely will not legally be presumed the father even if the child is the man’s genetic son or daughter. This is a shock to many men if the relationship between the mother deteriorates and the mother decides to leave town. The father of the child will have no enforceable rights to his genetic son or daughter absent the filing a suit to establish the paternity of the father.
If a father is not married to the mother of his child, then the only option to the father is that he must continuously live with the mother and his child for the first 2 years of the child’s life and hold out to the public that the child is his own. This usually does not happen because of the stress involved in the beginning stages of raising a child and other factors. The father may have an active role in his child’s life but if he does not live with his child continuously for the first 2 years of his child’s life, then the mother may take exclusive possession of his child and move anywhere in the U.S. and the father will have no way to stop her unless he petitions the court for emergency relief, which will likely result in genetic testing.
If you have fathered a child out of wedlock and have not continuously lived with your child for the first 2 years of the child’s life, then it is wise to secure a genetic test and file suit to adjudicate yourself as the father of your child so you may receive the rights of a parent as a matter of law. It is prudent to contact an experienced family law attorney for the process because the innate right to see, guide, and teach your child is too important to forfeit. A man never knows what the future holds in a relationship, and if you have a child out of wedlock it is important to protect your right to be a part of that child’s life. To do this seek an experienced attorney to ensure your right is not infringed or sabotaged.