This is your very first post. Click the Edit link to modify or delete it, or start a new post. If you like, use this post to tell readers why you started this blog and what you plan to do with it.
This is your very first post. Click the Edit link to modify or delete it, or start a new post. If you like, use this post to tell readers why you started this blog and what you plan to do with it.
If you’re thinking about selling your business, you need to know the different business valuation methods in order to get the best price possible.
First of all, you’ll need to know how much your business is worth so that you have an idea of where to set the asking price. With the rise of Internet databases and more readily available information on comparable business sales, valuing a business involves more accuracy and less guess work, but it’s still not a precise science and there is lots of room for divergent valuations.
There are several different methods of valuating a business, each of which takes a different perspective when looking at the business’s value. While there’s no “right” valuation method, if you calculate poorly, or decide to use your own methodology, you could certainly end up with several “wrong” prices and end up with the short end of the stick.
The three most common and basic approaches to business valuation are the following:
The income based approach has several subsets that appraisers use to valuate a business. The most common, particularly for small businesses, is called the “Multiple of Discretionary Earnings” method. Discretionary earnings are simply your pretax earnings, salary, depreciation, and other expenses.
There are two steps in the Multiple of Discretionary Earnings method. Step one is to calculate the business’ discretionary earnings for the next several years. You can take your most recent earnings and estimate what’s likely to happen going forward or you can average your last several years and use that figure.
Step two is to multiply your figure by anywhere from 0 to 3. An average for most small businesses would be between 1.5 (higher for businesses that perform above average). This multiplied figure accounts for the tangible business assets that the business will use going forward. For example, if you calculate your discretionary earnings to be $50,000 and the business performs above average, you might multiply the figure by two, to reach a value of $100,000.
While the above methods factor in tangible assets and revenue forecasts, don’t forget about intangible issues such as customer goodwill (the customer loyalty and good reputation the business has engendered over the years). Assuming you have a high level of goodwill, you should be comfortable asking for the high end of your price range.
There are other factors individual to business owners. If you need cash badly and simply want to sell, you’ll probably have to be content with a lower price and quick sale. On the other hand, if selling to someone who shares your vision and affinity for the business is important, you may have to wait for the right buyer. Additionally, depending on the market and economic climate, you may be able to sell for higher or be forced to sell at lower than fair market value.
When you need help from a business valuation lawyer, please call Ascent Law for your free consultation (801) 676-5506. We want to help you.
When your former spouse becomes delinquent with child support payments, you may be wondering how you can get the money you are owed. One route that isn’t normally taken, but is still a possibility, is to garnish Social Security benefits.
First, it’s important to determine what kind of Social Security benefits your former partner receives. You will not be able to collect your payments if he or she receives supplemental security income (SSI), because it is considered a welfare benefit, not an earned benefit. Other types of Social Security benefits, however, could be subject to wage garnishment if you file a request in your local Social Security office.
For the agency to garnish those benefits, you will need to have a judge issue an income withholding order. This means that you must have already proved in court that your ex has been delinquent on their payments. Once your judge has sent this order to your local Social Security office, the people there will then enter your case data into their system and start withholding child support payments from your former spouse’s Social Security benefits. Make sure you tell your child support lawyers about the need to collect child support from social security benefits. Sometimes, if you don’t have the specific language in the child support order about collecting it from social security; the social security office won’t withhold it and you’ll have to go back to court!
If your ex-spouse is not currently receiving any benefit payments, your order for garnishment of those payments will stay on file with the Social Security office, and as soon as he or she begins collecting them again, the deductions will continue.
Federal law dictates that Social Security offices can only withhold up to 65 percent of the monthly payments that your ex receives.
One of the more difficult parts of a divorce is how you manage the friendships you share with your former spouse. Your friends may feel like they have to choose one of you over the other. If they do try to maintain friendships with each spouse, it can take some careful social planning to avoid awkward situations.
It’s possible to maintain shared friendships after your divorce. Below are some tips to help you accomplish that:
You should try to talk about it with your spouse and discuss your concerns with your spouse and figure out what an ideal situation would look like moving forward. Which relationships would each of you prioritize?
Role play how you think you will feel about being around your former spouse after your divorce. It can help to broach this subject with your spouse during the divorce process to mitigate any awkwardness that could occur in social situations.
Talk to everyone by being forthcoming about your struggles with your friends, and help them become more comfortable with the idea of maintaining relationships with both you and your former spouse if they wish to do so.
It is possible that some friendships will end — especially those that involve your former spouse’s closest friends. There is no doubt that this can be painful, but if you accept this fact from the start, you can take some of the sting away when it comes to pass.
It might help to set some parameters or ground rules for how you will move forward in your shared friendships. For example, you should never try to use your friends as weapons against each other, and avoid speaking ill of your former partner in front of the friends you share.
If you have a question about child support, please call Ascent Law at (801) 676-5506 for your free consultation. We want to help you.
You don’t have to be famous to call yourself an inventor in today’s world. I’m telling you, as an intellectual property lawyer, most people who are “creatives” are inventors. I’m not kidding. If you like to create, then you can take your ideas and some perseverance can invent an amazing product or even some life-saving device.
When brilliance strikes and you come up with a great idea, create a record of invention before going any further with it. The record of invention should be written down and should include things like a clear description of the idea, the date, your signature, and the signatures of two people you trust who have “witnessed and understood” your invention and the dates they sign.
Build a prototype as soon as you can to transform the idea into a physical object.
Be discreet. Do not talk about your invention with people who are not bound by a confidentiality agreement.
Have a qualified lawyer do a patent search for you. Keep a file for your invention that contains items and information you and your lawyer will need while you prepare your patent application. Work with an experienced lawyer who is licensed by the Patent and Trademark Office and does patent work for a living. Start exploring and thinking about how you will market your invention.
Keep good, complete, and accurate written records. A written lab book or log, kept up to date as you work on your invention, that documents each day you did something, describes the efforts you have made in taking your invention from idea to reality (including test results, experiments, modifications). You can also have two witnesses sign and date your record book stating that they have “witnessed and understood” the work you have done to build and test your invention. Keep copies of all correspondence- emails as well- and any receipts relating to your invention.
Will it sell? One rule to determine whether your invention will sell well is that the total sales will be at least twenty times the cost of inventing and patenting it. Include in your cost calculation the cost of filing fees, hiring a lawyer to help with your patent filing, and the person who prepares the drawings of your creation.
Assess whether you will be able to get a patent on your invention. What is the prior art, if any. If you are improving on something that has already been patented, is your invention a new physical feature, a combination of prior separate features, or a new use of a prior feature? Does your invention fall into one of the five classes of items that may be patentable? That is, is it a process, machine, an “article of manufacture,” “compositions of matter,” or a new use of any of those items? If you are improving something that has already been patented, is your invention not obvious? Does your invention produce a new and unexpected result? You must think through these things carefully. Talk to us if you have questions.
When you need legal help with your invention, call Ascent Law for your free consultation (801) 676-5506. We want to help you.
Some people prefer to avoid probate when it comes to estate planning because it can be expensive and time-consuming. Fortunately, there are several ways to transfer property without going through the probate process. In addition to living trusts and joint tenancies, a transfer-on-death deed is one of the ways to transfer property after your death without probate. Lean now whether transfer-on-death beneficiary is the right choice for you.
You can create a transfer-on-death beneficiary deed (also called a beneficiary deed) to transfer property upon your death to a beneficiary you name in the deed. The deed should state the following details: (1) your name as the owner of the property, (2) property description, and (3) the name of the beneficiary(s). The deed should also explicitly state that it won’t become effective until you pass away.
To create a valid transfer-on-death deed, you must properly sign, execute, and record the deed. After drafting the deed, you must sign the deed in front of a notary public. Then, you need to record the deed with the local county office. If the owner fails to sign or record the deed, the deed is deemed invalid. Once the deed is created, you have full power over the property during your lifetime. Thus, you can revoke the deed anytime before you pass away through any methods of revocation or execution of subsequent deed.
There are several benefits to transfer-on-death deeds. First, you can change the beneficiary at anytime during your lifetime. The beneficiary does not have any legal interest in the property until you pass away, so the beneficiary’s creditors won’t be able to reach the property until the deed becomes effective. Second, expenses related to the transfer-on-death deed are less than the ones related to other methods of transferring property, such as revocable trusts and wills. Third, probate is not required to transfer the property under transfer-on-death beneficiary for property. Avoiding probate is a huge benefit because probate process is usually expensive and time-consuming.
Because transfer-on-death beneficiary deeds do not become effective until you pass away, someone can challenge the validity of the deed after you die. For example, someone can argue that you lacked capacity to create a valid deed. Or, beneficiaries and family members can sue each other to take the property entirely. In this case, a court proceeding may be required to resolve the issue.
Another disadvantage is that the beneficiary won’t be able to sell the property immediately upon the transfer. As opposed to joint tenancy with right of survivorship, transfer-on-death beneficiary for property does not automatically transfer the title to the beneficiary. Most states give people time to challenge the title on the property for a certain amount of time.
When you name a beneficiary, who will obtain title to the property upon your death, you must do so according to the applicable state law. Today, the majority of the states allow transfer-on-death beneficiary deeds to leave property to someone after your death. However, keep in mind, some states do not allow transfer-on-death deeds at all. Please call us to go over these issues when it comes to Utah property.
When you’re ready to go over your estate and plan it right, call Ascent Law for your free consultation (801) 676-5506. We want to help you.
When you start a business, you will have to decide which business structure to create. If you’re simply in business for yourself and don’t plan on hiring employees, you may be able to get by as a sole proprietorship. However, large business entities generally incorporate, which provides certain benefits in terms of liability protection and the complexity needed for a large business. No matter what you do, you should always have some business lawyers review what it is you are setting up to make sure it’s done correctly with your end goal in mind.
Each business structure has its pros cons, and since every business has unique needs and goals, you need to do your research before choosing. The following is an overview of the various types of business structures, which include sole proprietorships, partnerships (both general and limited), limited liability companies (LLCs), corporations, or nonprofits.
A sole proprietorship is perhaps the simplest of all the different types of business structures. Unlike LLCs and corporations, there are no papers to file and no fees to pay in order to set up a sole proprietorship. You are the sole owner of your business, and you simply have to begin business operations in order to create a sole proprietorship.
In terms of the legal entities involved in a sole proprietorship, you and the sole proprietorship are the same thing. This means that you will pay taxes on any business profit as income on your personal taxes, and if your business has any liabilities (like a court judgment or a past due debt), you are personally liable for them.
A partnership is like a sole proprietorship in that it is simply a business that is owned by two or more people. Similarly to a sole proprietorship, the owners of a partnership do not need to file any papers or pay any fees to set up a partnership, the partnership simply begins when you start a business with one or more other people. Also like a sole proprietorship, each partner will report their share of the business profits on their personal taxes as income, and each partner is personally liable for any debts, claims or other liabilities that the business is responsible for.
Unlike a general partnership, a limited partnership costs money and can be very complicated to set up. Limited partnerships are not the best choice for a small business that has a small potential for personal liability. Limited partnerships are normally organized by one or more persons, the “general partners,” that are responsible for getting others to join the partnership as “limited partners.”
The general partners run the day to day operations of the limited partnership for the most part. The general partners are personally liable for any debts, judgments or other liabilities that the limited partnership has, except if the general partner is a corporation or a LLC. In addition, just like a partner in a normal partnership, the general partners in a limited partnership will share in the business profits and report this income on their personal income taxes. The limited partners are not personally liable for any of the limited partnerships liabilities, and are correspondingly not included in many of the day to day operations.
Although creating and maintaining a corporation or an LLC will probably be more complex and costly than forming a sole proprietorship or partnership, it may be worth it for your small business depending upon the type of work you plan on doing. Perhaps the main reason you would want to organize your business as an LLC or corporation is to shield yourself from any personal liability that may arise from your small business’ dealings.
Although LLCs and corporations are alike in many respects, what truly sets a corporation apart from the other types of business structures is that a corporation is its own legal and tax entity. A corporation pays its own taxes on any profits that it keeps and the owners of a corporation only pay income taxes on monies they draw from the corporation in the form of salaries, dividends and bonuses.
A LLC, just like a corporation, provides limited liability to the owners of the LLC for the business’ liabilities, including debts, judgments and others. Where the LLC differs from a corporation, however, is in terms of taxes. Unlike a corporation, a LLC is not its own, separate tax entity, and the owners of the LLC must pay personal income taxes on their share of the profits that the LLC keeps during the tax year.
Organizing your business as a corporation or a LLC makes sense in two situations. First, if the business in engaged in a dangerous activity that makes it more likely to be sued, or if the business has the potential of racking up large amounts of debt, then a corporation or a LLC may be a good idea to shield the owners from personal liability. Second, if any of the owners of a business have large amounts of personal assets that they want to shield from any potential liability associated with the business, a corporate or an LLC could be the best option.
A nonprofit corporation is simply a corporation that was formed with the intent to carry out a purpose that is charitable, educational, literary, religious, or scientific. A nonprofit corporation can solicit charitable givings from the public, and can also seek to raise funds by seeking private grant money from companies and individuals. One of the largest benefits to a nonprofit corporation is that the money that is taken in for the charitable purpose is normally not taxed by either the federal or state governments.
If you are here, you probably have a business law issue you need help with, call Ascent Law for your free business law consultation (801) 676-5506. We want to help you.
A common myth is that if you live with someone for seven years, then you automatically create a common law marriage. This is actually not true in any state. Common law marriage occurs when a couple lives together for a certain number of years (one year in most states), holds themselves out as husband and wife, and intends to be married. Once a common law marriage is formed, that couple is treated legally the same way that traditional married couples are treated. This means that if the couple intends to no longer be married, they must file for divorce.
Only a certain number of states recognize common law marriage. However, if you and your spouse have a common law marriage in a state that recognizes common law marriages and you move to a state that does not recognize common law marriages, you are still legally married in that new state.
Which states recognize common law marriages?
Be sure to check the family laws in your state.
No, not automatically. Anyone can change their name, however, as long as the name change is for a legitimate, non-fraudulent purpose. If you’d like to change your name, simply begin using your new name consistently and change it for all of your accounts, memberships, and identification documents. Most private entities respect name changes via mere usage. With the threat of identity theft and fraud, however, fewer and fewer companies are willing to change your name without legal documentation of your name change.
When married through traditional marriage, you are given marriage records that suffice as proof of your new name. People married via common law marriages, however, do not have marriage records. In this case, you will need a court order documenting your name change. This documentation is helpful for proving to private entities, like banks, that you legally changed your name, but it is required by government entities to change things like your state issued I.D., passport, and social security card.
Well, in Utah, you can have a “marriage like relationship” but it’s not the same thing as a common law marriage. Depending on your specific circumstances, you may be able to get the court to recognize your relationship as a “marriage like relationship” which they turns your relationship into a marriage.
One of the things you need to show is that you’ve both been holdings yourselves out as married. Do you do that? Are you joint on all of your accounts, think of water, sewer, gas, electric, bank accounts, credit union accounts, loans for your cars, loans for your house, etc. For more information about how to do this, please call and speak with a lawyer at Ascent Law to discuss your options and to see if your situation would meet the criteria.
Technically, there is no such thing as a common law divorce. If you are in a legally-recognized common law marriage and you wish to end the relationship, you must obtain a regular divorce just like any other ceremonially married couple. Many spouses hire divorce attorneys, since you will need to have the court decide on things like child support and custody, spousal support, and property division. Can you get a
divorce in Utah if your relationship is a “marriage like” relationship – yes. Yes you can.
If you were married by common law marriage and move to a state that does not recognize common law marriages, you will still have to obtain a legal divorce in that state, just as if you were ceremonially married. This is because of the fact that all states recognize opposite-sex marriages from other states, including common law marriages. When you move to another state, you are still married, and must obtain a legal divorce if you choose to end the marriage.
If you have a questions about divorce in a common law marriage in Utah call Ascent Law at (801) 676-5506. We will help you.
In deciding all divorce issues affecting your children, the family court applies a single, all-important standard: “the best interests of the child.” But how does the court know what is in your child’s best interest? In tough custody battles, parents often have conflicting notions of what’s best for their child. They present the court with very different impressions of who the child is, what interests and talents the child has, and the child’s physical and emotional needs. Faced with competing versions of the truth, the court may appoint a Guardian ad Litem, an attorney to represent the child. In Utah, a Guardian ad Litem is private, meaning you and the other parent have to pay the fees of the Guardian ad Litem. You each pay hafl of the cost. This can get expensive if matters are hotly contested.
Appointment of a Guardian ad Litem is meant to protect the interests of a child who is a subject of the dispute between the parents, but not a party to the divorce action. As such, the Guardian ad Litem acts as an advisor to and advocate for the child. For this reason, courts generally only appoint Guardian ad Litems in custody actions where it is appropriate to ask the child’s preference.
The Guardian ad Litem is charged with assessing whether the child has an impairment that prevents him or her from making knowledgeable, voluntary and considered judgments. If in the Guardian ad Litem’s opinion the child is unimpaired, the Guardian ad Litem will report the child’s stated preferences. The Guardian ad Litem is not a witness but may call witnesses and cross-examine witnesses. The Guardian ad Litem does not present a written report to the court, but should present relevant evidence to the court that might otherwise not be presented. The Guardian ad Litem will also tell the judge if he or she believes custody should change or if there is any abuse.
Parents must always remember that the Guardian ad Litem is not their lawyer, so any communications are not considered confidential. Any statements a parent makes to the Guardian ad Litem can be used against them in the custody dispute.
If you are a parent in a shared custody arrangement after a divorce, birthdays and holidays can be especially difficult times. You may need to accept that your long-time rituals can no longer occur as they once did. However, there are still ways you can make these times of the year special and meaningful.
Below are some helpful tips:
If you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will help you.