Going through a divorce is among the most difficult and emotional processes anyone will experience throughout their whole life. This process can be especially challenging when it comes to dividing assets or property acquired during the marriage, including a business. Business owners may understandably worry about whether they must divide their business with their soon-to-be ex-spouse. So, the question arises, will business owners lose their business in their divorce? If you are concerned about this, discuss the situation with your attorney to ensure you understand your rights and how you should proceed moving forward.
Considerations for Business Owners Facing Divorce
Texas's property and business laws can be complex and thus require professional legal guidance for business valuation and protection amid divorce proceedings. As Texas observes community property laws, any assets acquired during the marriage are usually considered marital property. As a result, such property is subject to an equitable division during a divorce.
If a business property is determined to be a shared asset during a divorce in Texas, and the court orders a division, it may not need to be an entire business changeover. Instead, courts can order a buyout of the ex-spouse's share value or alternative simple solutions depending on the business status and structure. For example, a buyout may involve the ex-spouse receiving a lump sum payment in exchange for giving the other party sole ownership of the business.
In some cases, divorcing spouses may agree about the division of business interests without involving a court. Likewise, matters regarding buyouts, transfer of ownership, income, investments, and other specific transactions may be mutually agreed upon, saving time, money, and stress.
Texas laws strive to protect the interests of business owners while also making sure that spouses who have a stake in a business are able to receive what may be owed to them. Regardless of whether you are a business owner or are perhaps someone interested in whether they are owed a piece of a business, your attorney will be extremely beneficial during this time, as they will be an excellent advocate for you and can be relied upon as a source of information and strategic advice for how to maximize the potential for a favorable divorce settlement.
Contact a Collin County Divorce Lawyer
If a business is relevant to your divorce case, contact legal counsel right away. Contact the skilled Wylie divorce attorney with Law Office of Brian Bagley for determined legal guidance. Call (972) 843-7158 for a free consultation.