Breaking Up a For Profit Corporation
A For Profit Corporation can be a useful tool if utilized appropriately. One major problem with a For Profit Corporation is the lack of flexibility to dissolve the Corporation when a disagreement arises between the equity shareholders. If ownership in a For Profit Corporation consists of 50% – 50% split in equity then there may be issues down the road.
Many future circumstances may warrant a dissolution of the For Profit Corporation, such as a dispute on the direction of the business, the profitability of the business, or simply a disagreement regarding employment and management duties. When these disputes arise, it may make the For Profit Corporation untenable and impractical. This can be a problem if one owner of the company wishes to continue business as usual and the other owner wishes to dissolve the corporation.
When making the decision to enter into a For Profit Corporation and splitting equity within the Corporation at a 50/50 ratio please keep in mind a couple of things:
- It will be hard to dissolve the Corporation with a 50/50 split in equity;
- It will cost additional expenses to appoint a receiver to manage the company;
- It will cost additional expenses to retain a lawyer for the purpose of forcibly winding down a For Profit Corporation;
- It will be an uphill battle to dissolve a For Profit Corporation that creates jobs in the community because the policy of Texas Courts’ is to find any alternatives to a dissolution that may bring termination to many employees.
- It will be a complex and time consuming undertaking to dissolve a For Profit Corporation if both equity shareholders do not agree.
Prior to forming a For Profit Corporation, you should research all of your options. Many business organization can provide tax relief and flexibility without the rigidity of a For Profit Corporation. Please seek an experienced attorney when creating or amending any business organization and ask the pros and cons of all business entities.
Legal Wills & Trusts in Texas : Contesting a Texas Will
At the Dallas firm of The Nacol Law Firm PC, our lawyer Mark A. Nacol, offers more than three decades of experience in resolving Texas probate matters and Texas contested wills. Our trusted legal counsel has assisted numerous clients throughout Texas.
For more information on Texas probate law and Texas will contests, from Dallas Attorney Mark Nacol, contact us today at (972) 690-3333.
Infidelity or Adultery in a Texas Divorce
In Texas, adultery or infidelity may play a significant role in how a divorce unfolds, impacting asset division in a divorce and even custody issues to a certain extent. Here’s how adultery generally affects the divorce process in Texas:
1. Grounds for Divorce:
- No-Fault Divorce: Texas allows for “no-fault” divorces, where neither spouse has to blame the other for the breakdown of the marriage. Commonly, the reason cited is “insupportability,” which means that the marriage has become insupportable due to discord or conflict of personalities that destroys the legitimate ends of the marital relationship and prevents any reasonable expectation of reconciliation.
- Fault-Based Divorce: Adultery is also one of the grounds for a fault-based divorce in Texas. If one spouse can prove the other’s infidelity, it can influence the divorce proceedings, particularly in financial settlements and custody decisions. The Court of Appeals has given the following definition of Adultery: “the voluntary sexual intercourse of a married person with one not the spouse.” In re S.A.A., 279 S.W.3d 853, 856 (Tex. App.—Dallas 2009, no pet.)
2. Impact on Division of Assets:
- In Texas, the court divides marital property based on what is “just and right.” While this typically starts with the presumption of a 50/50 split, proven adultery can lead the court to award a more favorable division to the non-adulterous spouse. This is because the court may consider the circumstances and factors under which the property was acquired and the behavior of the parties during the marriage. Such factors include: Such factors include (1) the nature of the marital property, (2) the relative earning capacity and business opportunities of the parties, (3) the parties’ relative financial condition and obligations, (4) the parties’ education, (5) the size of separate estates, (6) the age, (7) health, and (8) physical conditions of the parties, (9) fault in breaking up the marriage, (10) the benefit the innocent spouse would have received had the marriage continued, and (11) the probable need for future support. Murff v. Murff, 615 S.W.2d 696, 698 (Tex. 1981).
3. Impact on Child Custody and Visitation:
- While adultery by itself does not necessarily impact custody arrangements, the circumstances surrounding the adultery might. For instance, if adulterous behavior also involved other conduct that could be deemed harmful to the children it could influence the court’s decisions regarding custody and visitation rights. More common repercussions for Adultery or Infidelity in a divorce are what the Court’s call a “morality clause”. This provision usually prohibits one parent from having a romantic third-party guest stay in the house while the children are present from 8:00 pm to 9:00 am the next day.
4. Proving Adultery:
- Proving adultery in a divorce case requires evidence that convinces the court of the likelihood that infidelity occurred. Direct evidence is not necessarily required; circumstantial evidence that suggests the likelihood of both opportunity and inclination to commit adultery might suffice. The burden of proof is the preponderance of the evidence, thus just a little more than 50%. It should be known that actions of adultery and infidelity are still probably even after separation and during the divorce litigation.
Adultery and Infidelity are not as damaging in the modern era, though it is completely fact intensive and dependent on the Judge in your case. Some Judges take Adultery in a Texas Divorce more seriously than others. It is a liability to mitigate if it has occurred.
Julian Nacol
Nacol Law Firm P.C.
Dallas Divorce Attorney
(972) 690-3333
IRA – 401K – Life Insurance and Probate in Texas
A common question to all Texas probate attorneys is, “What Letters of Testamentary do I need for my parent’s life insurance policies?” In Texas, a will controls the distribution of all assets in the probated estate. Certain assets are classified as non–probate assets and no Court intervention is required. The following are the most commonly used non–probate assets:
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- IRA’s
- 401K’s
- Life Insurance;
- Pension Plans; and
- Any assets placed in a separate trust.
These assets are not usually distributed by a will because the assets are contractual and pass free of probate. Individuals may freely designate any beneficiary they wish to receive these assets and when that individual dies, the money will be transferred directly to such beneficiary, if an individual designates his or her estate as the beneficiary the money passes through probate as dictated by the will.
Most life insurance policies and 401K’s will designate an individual’s estate as the third or fourth fee of probate. This is usually the default designation, which will be triggered if all the other residual beneficiaries die prior to the individual. If this happens, then the estate of the insured must be probated. Once the estate is probated, an executor is appointment, and the Court will issue Letters of Testamentary that the Life Insurance Company can use to support payment to the estate.
Even with non-probate assets, a will may be needed. Distribution will likely be more expensive and require multiple hearings. It is always the best practice to have a will for all estate assets, probate assets and non-probate assets.
It is important to constantly monitor who is appointed as beneficiary on your 401K and Life Insurance proceeds. If a Life Insurance Company or Employer is not informed of a divorce, then the former spouse may claim all the proceeds if the spouse is still listed as a beneficiary. The Life Insurance company or Employer will be protected from liability unless (1) the company or insurer received written notice that the beneficiary designation was invalid, and (2) the company or insurer failed to interplead the proceeds into the Court Registry.
Preparation and execution of a proper will is essential for your family and as back up for any non-probate assets such as life insurance, 401K’s, and pensions. Call the Dallas Texas probate attorneys at the Nacol Law Firm if you are having difficulty receiving payment from any of the above-mentioned non-probate assets since chances are the difficulties can be cured through the probate.
Divorce Litigation : High Asset Divorces
High Assets Divorces in Texas can be painstaking and involve substantial time and money to properly litigate an individual’s case.
1. Original Petition and Temporary Orders
Single most important event for leverage is who files their Divorce Petition first. If you file first you are a Petitioner. A Petitioner receives a crucial benefit in litigation. A petitioner is afforded the opportunity to talk first and last in litigation, sets the tempo of the divorce, and creates the narrative of the litigation. Being a Petitioner is invaluable, thus if you have decided to file you should look to file first.
Temporary Orders are usually, absent emergency relief, the first hearing the Court will have in the case. At temporary orders the Judge will likely attempt to place a Band-Aid on all assets to insure there is not wasting of assets, custody and access of the children are determined, and payments remain the same of any separate or community property assets. Temporary spousal maintenance, exclusive use of property, and injunctions are granted at this hearing. With High Assets this hearing is pivotal in determining how litigation will continue in the future. Every Court is different but multiple additional temporary order may be filed or clarification motions.
2. Discovery Phase and Experts
The discovery phase may be cumbersome and painful. Discovery consists of multiple written questions. These include production questions (asking for documentation), interrogatories (questions require a written notarized response), admission (admit or deny questions), depositions (typically 6 hour cross examination in front of court reporter at an attorney’s office), and inventory and appraisal (sworn list of assets and values of each asset). These process are usually expensive but necessary to prove the amount of the marital estate and the characterization of property.
Experts are also employed at this stage. They are costly but necessary to prove tracing, value of fraud, or overall value of the business. These issue are likely contested, thus the battle of experts continue until the final hearing.
3. Depositions
A deposition is a formal question-and-answer session used in divorce cases to gather information under oath before trial. It typically takes place in a lawyer’s office, where one spouse (the deponent) answers questions from the opposing attorney while a court reporter records everything. The purpose of a deposition is to uncover facts, clarify disputes, and assess how a witness may testify in court. While it doesn’t happen in a courtroom, the statements made during a deposition carry legal weight and can be used as evidence later.
In high-asset divorces, depositions become even more critical because of the complex financial issues involved. Attorneys may ask detailed questions about business ownership, real estate holdings, investments, hidden assets, trusts, and even potential misuse of marital funds. If one spouse suspects the other of concealing wealth, forensic accountants or financial experts may analyze records and testify about discrepancies. The opposing attorney may also scrutinize spending habits, tax returns, and financial disclosures to ensure full transparency.
Because high-asset divorces often involve prenuptial agreements, inheritance disputes, or business valuations, preparation is crucial. A well-prepared spouse will work closely with their attorney to review financial documents and anticipate tough questions. While depositions can feel intense, remaining truthful, composed, and strategic can help protect one’s financial interests and ensure a fair resolution.
4. Mediation
Meditation may occur in the middle or toward the end of the litigation process. A good mediator may range from $2,000.00 to $3,500.00 per side. The mediation process can be difficult and last from a half to more than a full day. Some mediations go for 14 to 15 hours to obtain settlement. Though this is expensive it is still less costly than going to final trial and many outcomes may be obtain by agreement to which a Judge cannot order. The flexibility of mediation makes this process less painful and costly than attending final trial.
5. Final Trial before the Court or Jury
Final trial may be performed solely by a Judge or a Jury of 12 peers. Only 10 of 12 Jury members are needed to find in favor of either party. A Jury trial is more expensive, takes more time to prepare, and may be more risky depending on the County. A trial before the Judge is cheaper and may simplify many matters. It is important to know for every 1 hour in Cout it takes more or less 4 hours to prepare.
A jury trial with a minimum of 2 experts and multiple other fact witness should take anywhere from 4 to 7 days. A trial before the Judge for a similar case may take 2-4 days, depending how the judge runs the Court.
There are many trials and tribulations an individual will have to surpass in the Court system if they are getting a divorce and the marriage contained with high assets. It will likely be costly, painful, but necessary. Many other factors such as summary judgements or motions to exclude experts, witnesses, or exhibits may increase fees. It is important to be confident with your attorney and find a firm that has experience with higher assets cases to ensure the flow and strategy of the litigation fulfills your goals.
High Asset Divorce Attorneys in Dallas Texas
Nacol Law Firm P.C.
(972) 690-3333
NACOL LAW FIRM P.C.
8144 Walnut Hill Lane
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Dallas, Texas 75231
972-690-3333
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Attorney Mark A. Nacol is board certified in Civil Trial Law by the Texas Board of Legal Specialization



