Nevada Asset Division Lawyer
Executives or other highly compensated individuals pose a significant challenge. Vested and non-vested stock options, non-liquid partnership interests and other unique assets often come into question.
For the "homemaker" the largest short-term issue is cash flow, which is paid by child support and maintenance (alimony) in order to maintain the household during the divorce proceedings. This can often be problematic, especially if the there is a downturn in the business, or the parties and/or business are heavily in debt. Long-term issues involve the valuation of business interests and the disposition of non-liquid assets. No matter how large the estate, Nevada Law requires a fair and equitable distribution of the assets. This does not necessarily mean 50/50, and a great deal of effort can be spent convincing the court of what is fair under the circumstances.
For the executive, the largest short-term issue also tends to be cash flow. Often the parties have been living an expensive lifestyle that was manageable when they were married, but becomes impossible to maintain when two households are being supported. Another significant short-term issue is the other spouse's employment if they have been working for the business. Longer term, the valuation of the business tends to be a significant issue. Nevada Law not only divides the value of the business, but also the "goodwill," which is an intangible asset that cannot be sold and converted to cash to pay off the other spouse. This often leaves the executive with having to incur significant debt to satisfy the award to the spouse.
Stock Options. Typically an accountant is retained to provide a calculation to determine the value of the stock options. This issue has taken on less importance since the downturn in the stock market with the result that many stocks are trading below the strike price of the option.
For business owners, the value of the business is undoubtedly the largest issue in the case. There are five methods of determining the value of a business: 1) The straight capitalization accounting; 2) The capitalization of excess earnings method; 3) The I.R.S. variation of capitalized excess earnings method; 4) The market value approach; and 5) The buy/sell agreement method. Which method is best for the business in question is often in dispute. Experts are usually retained to provide an opinion as to which method is appropriate and what the value will be.
In general, the divorces of executives and business owners are more involved and more expensive. Competent counsel should be retained early on to prepare the case for mediation and/or trial.
The lawyers of Hofland Beasley & Associates are committed to offering practical legal advice and trial advocacy without sacrificing results.
Contact Us
For experienced legal representation, contact Hofland Beasley & Associates. We offer free initial consultations and are available for evening and weekend appointments. We also charge reasonable rates and accept credit cards. We handle all personal injury cases on a contingency fee basis. Our offices are conveniently located in downtown Las Vegas, just steps away from the federal and state courthouses. To contact our Las Vegas law firm, call (702) 487-9691 or (877) 825-1554.
