Divorce is difficult for many reasons, but it can be especially complicated for small business owners in Texas. If you own your own company, you know how hard you worked to build your business and find success over the years. The possibility of having to divide your hard-earned business assets or losing some of the control you have over your company can be overwhelming.
Business owners would be wise to take care to understand how divorce and the property division process will work for them. While it is certain that your divorce will impact your life in various ways, that does not have to mean that you will lose your business or have to give up operational control. Many factors will determine exactly what happens and what the future of your company will look like.
The business of dividing a business in a divorce
A business is an asset, and all marital assets are subject to division in a divorce. The key to what will happen to your business is whether your company is truly a marital asset or if it is a separate asset. If you have one, a prenuptial agreement may also impact what will happen to marital assets. Consider some of the following facts about property division and business assets:
- Your business is likely marital property if you or your spouse started the company after your marriage. This means that it is subject to division.
- Your business may be separate property if you started your company before you married or if there is evidence you started the business with completely separate funds.
- Even if you started your business before you married, it is possible your spouse has a claim to at least a portion of your business assets.
As you can see, it can be a little complicated to determine exactly what is marital property and what is not when it comes to your family business. Because of the complex nature of this process, many business owners find it beneficial to work with an attorney who can help them pursue the most beneficial outcome to their situation.
If you are facing divorce, you will find it beneficial to take quick action to seek a complete understanding of your legal options. It is possible to fight for a final resolution that allows your business to have a strong future and for you to retain financial security for years to come.