How business assets are handled in divorce

On Behalf of | Mar 27, 2019 | High Asset Divorce

If a couple owned a business while married, it will likely need to be divided in a divorce. To determine how to divide a Texas company, it must first be determined how much the company is worth. From there, the former couple can determine how they want it to operate going forward. It is possible for people to remain business partners after their marriages come to an end.

However, most people aren’t able to work with a former spouse, and many stay because of their attachment to the company. In many cases, one person continues to operate the company while the other gets bought out. The buyout can take place immediately or over the course of several payments. The latter option may be ideal for those who don’t have enough liquid assets to pay the outgoing partner right away.

A final option is to sell the company and split proceeds. Depending on the company’s sale price, an individual may choose to retire or start a new business with the money obtained from it. Of course, this could be problematic as the couple will need to work together until the company is sold. Furthermore, the divorce decree may not be ready until the company is sold and the payment structure finalized.

The asset division process may be one of the more complicated parts of a divorce. This is because the parties may not agree on the value of an item or who should have it. It is also not uncommon for individuals to dispute whether an asset is marital or separate property. An attorney may help to resolve these and other disputes that may arise.