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Small Business Owner Divorce in Texas

Posted on in Family Law

Llano divorce attorneyOwning your own business can be deeply satisfying. Many small business owners appreciate the freedom and independence self-employment provides. They also enjoy the creativity and control they have regarding products and services. But being a small business owner also comes with certain challenges, especially when it comes to divorce. If you are a small business owner who is facing divorce, there are some special considerations you need to be aware of.

Business Assets and Community Property Laws

Texas is a community property state. This means that, in general, any assets or debts acquired during the marriage are considered to be jointly owned by both spouses. This includes the value of a small business. Often, businesses are considered marital property in Texas. This means that businesses are subject to division during divorce, just like any other asset.

However, a business that is classified as separate or non-marital property through a prenuptial agreement is not considered community property. Businesses that were established before the marriage may also be classified as separate property.

Valuing a Small Business in Preparation for Divorce

If you own a small business, it is important to understand how community property laws may affect your business in the event of a divorce. If the business is part of the marital estate, both parties have a right to a share of the business's value during the divorce. One common issue that can arise is how to fairly value the business for asset division purposes. This can be complicated, as the value of a business is often difficult to determine.

Dividing the Value of the Business Between Spouses

Divorcing business owners have often poured considerable time, energy, and money into their businesses. They do not wish to simply sell the business and split the proceeds during divorce. One popular option is for the business owner to compensate the spouse for his or her share of the business with other assets such as real estate.

Some divorcing couples are able to remain co-owners of the business and even continue running the business together after their marriage ends. However, this is obviously not an ideal solution for every couple.

Contact Our Llano Divorce Lawyer for Business Owners

If you own a small business and are facing divorce, consider working with an experienced Llano County divorce attorney to protect your interests. Attorney Russ Alan Baker can help you value your business and negotiate a fair division of assets in your divorce. Call Law Office of Russ Alan Baker, PLLC at 325-216-2006 for a free consultation.

 

Source:

https://www.forbes.com/2006/12/12/divorce-business-value-pf-estates-in_mb_1212money_inl.html

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