How Can I Protect My Business During a Divorce?

How Can I Protect My Business During a Divorce?

Dividing property in a divorce is stressful enough, but the stakes can be much higher when you own a business. Business interests are often property potentially subject to division in a divorce, so you must take the proper steps to protect your company and livelihood. Speak with a Fort Worth divorce lawyer immediately. 

How Does Separate Property and Community Property Differ in Texas?

If you own a business and are going through a divorce, it is normal to be concerned that your spouse might be eligible to receive half of your interests in the divorce settlement. After all, Texas is a community property state, meaning that assets acquired after your marriage are typically divided equally in the event of a divorce. That said, property that is categorized as separate property is treated differently and will not necessarily be divided if you divorce.

Is a Business Considered Community Property in Texas?

Establishing whether a business is separate or community property can be tricky. If the business was founded before the marriage took place, it will typically be considered separate property. However, the earnings and growth during the marriage can be marital property. If it was started after the marriage, the entire business would typically default to community property. 

There are exceptions, such as when there is a prenuptial agreement or business contracts limiting the division of business interests. There are many different considerations when looking at the business as a marital asset, which is why it is necessary to work with a skilled Texas property division lawyer. It helps to discuss protections ahead of time in case you need to draft a prenuptial or premarital agreement.

Is My Spouse Entitled to Half My Business if We Divorce in Texas?

If you formed the business after you were married, it is likely that your spouse might be entitled to part or half of the business. The chances that your spouse will receive a portion of the business increase if they were involved with the business in any way. Again, this can depend on how your business was initially set up and structured. Additionally, if you received the business during your marriage as a gift or an inheritance, it may not be considered common property. Your Texas divorce attorney can help provide more insight and guidance on how to best protect your business during a divorce.

Dividing a Business in a Texas Divorce

There are typically two steps to dividing a business in a Texas divorce. The first step is characterization, where it will be determined if the business is separate or community property. If the business is categorized as community property, the second step will be a valuation, assessing how much the business is worth. It may also be taken into consideration how much each spouse has contributed to the business. Once the valuation is complete, the value of the business may be added to the list of assets to be divided in the divorce. 

Consult with a Fort Worth Property Division Attorney

If you own a business and are going through a divorce, it is advisable to work with experienced Divorce Lawyers Fort Worth and a knowledgeable Fort Worth property division attorney to navigate the process. At MBH Fort Worth Family Law, our team is dedicated to protecting the rights of our clients in the event of a divorce.

Don’t delay; call us today at 817-476-7964 or contact us online to schedule your free initial consultation and learn more about your options for protecting your business in a Texas divorce.

Fort Worth, TX Divorce & Family Lawyers

Constance Mims has over fifteen years of experience practicing exclusively family law. Mrs. Mims is Board Certified in Family Law, by the Texas Board of Legal Specialization. She is Collaborative Law certified and is a shrewd negotiator, not to mention her experience in the most challenging child custody, child support, spousal maintenance, alimony, prenuptial agreements, and divorce issues, both in court and in the appellate arena.

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