In Divorce, What Will Happen To The Business?
For most people, professional life is somewhat separate from personal life. For business owners, however, the distinction can blur. The personal matter of divorce could particularly have implications for the business – and vice versa.
If you or your spouse owns a business in Texas, the asset division process and other aspects of your divorce will be different. Our lawyers at Skillern Firm are experienced with representing clients in these complex cases. We can help ensure that you receive a fair amount of property and work to preserve your business in the process.
Determining Who Can Claim A Stake In The Business
The classification of the business is critical. If the business counts as marital property, both spouses may claim a portion of the value. If the business is separate property, the court will not consider its value when determining awards, alimony and other matters.
The division of a business in divorce depends on several factors, including:
- When the business was started
- Whether only one or both spouses started the business
- Whether the spouses share co-ownership
- The existence of a prenuptial agreement that determines business ownership
- Whether marital assets were used as business capital at any point
Co-mingling marital funds and business funds is a common reason why a spouse might have a claim in an otherwise separate business. For example, after using a joint account to buy business-related tools, the business might count as marital property.
Depending on your circumstances, it might be in your best interests to prove whether the business is a marital property. Our lawyers can argue in your favor.
Dividing The Value Of The Business
When both spouses are entitled to business assets, we can streamline the asset division process. You can review your options with our attorneys, which may include selling the business, liquidating its assets or keeping it intact through “buying” your share with other marital property. We will advise you on each opportunity.
We Prioritize Fair Results
You deserve a fair divorce outcome. If you are entitled to all or a portion of a business, we will work to protect your share. Through negotiation, mediation or trial, Skillern Firm seeks solutions that work for you. Call (713) 229-8855 or email us in Houston for a consultation.