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Remember to protect your business interests in a Texas divorce

Wednesday, July 18, 2018

Going through a divorce is an emotional and trying experience for everyone involved, even if it was a mutual decision. It can become even more complicated when one or both parties own a business. It is crucial for anyone navigating Texas divorce proceedings to consider how division of property laws may be applied.

Many issues must be addressed when dividing assets in a divorce, particularly when a business is involved. When the business was established is a crucial component. If it was started by either spouse during the marriage, it will be considered as marital property. Since Texas is a community property state, the business assets would be divided in a divorce.

Another aspect to consider is the funding of the business.  If joint accounts or salaries were used to acquire the business, it would be categorized as marital property in a Texas divorce. Of course, there may be exceptions to these circumstances, so it is always wise to consult an attorney with experience in this area.

A marital property agreement would be a wise choice for a business owner who is not yet married.  This prenuptial agreement would specify potential division of property should a divorce subsequently occur. A family law attorney can assist with these types of agreements. An already married businessperson should consider the legal structure of the business as it is established.  This could help protect the business in the event of a divorce. 

Texas divorce laws can be complicated when it comes to division of property, so it is important to protect business interests. In any divorce, the proceedings are best handled with the advise and support of an attorney. A lawyer familiar with these laws can be of great assistance, and can significantly increase one's odds of being able to move forward toward a better future.

Source: bizjournals.com, "How to protect your business during a divorce", Marcellus Davis, Dec 28, 2016

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