M. J. Hill & Associates, PLLC
Call Us Today To Schedule An Appointment 512-212-5459 Search

Business owners have more to lose in a divorce

The economic aspects of a divorce can be quite divisive for separating spouses. For many Texas couples, financial disagreements are what led to the divorce in the first place. If one or both partners own a business, the property division process can be even more complicated. Factors such as whether the business was started before or after the marriage and how much growth the business experienced during the marriage are relevant issues in determining how the assets will be handled.

An initial consideration is that Texas is a community property state. This means that assets acquired during the marriage are generally considered marital property to be split evenly. If a business was in existence before a marriage, and all transactions were kept separate and apart from all personal transactions, there could be an argument that the business is truly separate property and therefore not subject to property division. Seldom, however, are the lines of separation so precisely maintained.

The parties can agree to maintain the business as the owner spouse's separate property through either a prenuptial or postnuptial agreement. However, it is important to ensure that both parties have been adequately informed of their legal rights and understand what is at stake. This is especially true of the non-owner spouse, who might be less sophisticated in business matters than the owner spouse. Of course, it may also be possible for the owner spouse to retain the business completely and the non-owner spouse to receive other property of equal value.

High-asset divorces often involve disputes concerning complex asset division. An experienced family law attorney can provide guidance to a client on how best to proceed.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Have Questions? Email Us.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

${site.data.firmName}${SEMFirmNameAlt}

Contact Us

San Marcos Office
1913 Dutton Drive
Suite 406
San Marcos, TX 78666

Toll Free: 800-524-0139
Phone: 512-212-4916
Fax: 866-506-2440
San Marcos Office Location

San Marcos Office
P.O. Box 1296
San Marcos, TX 78667