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Texas Law - What is the "Marital Portion" of a Business? The court will determine the community property portion of the business at the divorce and divide that portion between the spouses. The court has wide discretion in the allocation of the community portion between the spouses. The value of the separate property portion of the business stays with the owner. Cases: Rathmell v. Morrison (1987) 732 SW2d 6 (The trial court awarded the wife $3 million as her share of the community insurance businesses, which court had found was worth $4,857,000. The appeals court overturned the decision, because the jury instruction and some of the court's factual findings were not clear. But the appeals court indicated that the result on re-trial might be the same. It said that there was some "professional goodwill," which was not community property, but also some "business goodwill," which was community property). Eikenhorst (1988) 746 SW2d 882 (court awarded wife $48,000 from cash accounts of husband's corporation, of which he was the sole shareholder. Also, the court found that the radiology business had some commercial goodwill, based on contracts with the local hospitals. Wife was awarded approximately 56% of $780,000 of community assets). Vallone (1982) 644 SW2d 455 (where business was worth $1 million, 47% of initial capital was traceable to husband's separate property, court awarded of 70% of remainder to wife).
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