Business Owners Should Be Aware of the Following Tips to Prepare for a Divorce in Texas

Business Owners Should Be Aware of the Following Tips to Prepare for a Divorce in Texas

When a divorce is on the horizon for you, it is reasonable to want to learn as much as you can. The fact of the matter is that not only is a divorce a complex process to go through, but many professional tips can help you prepare for a divorce.

For such a life-changing and important institution, there isn’t much information about some aspects of divorce available for people.

If you are a business owner, you may be nodding your head up and down at this point. Having worked towards building and growing your own business for a long time, you now have grown worried that a divorce could spell disaster for that business and yourself.

1. Be Careful Who You Take Tips From When Preparing for a Divorce

You might only have advice from a friend who’s been through a divorce. Relying on a trusted friend’s advice is often good, but be wary of basing decisions on non-legal advice from someone with limited divorce experience.

Your business could be divided as part of the community estate owned by you and your spouse. The business might not be split, but its ownership percentages may depend on its classification as separate or shared property.

If your divorce goes to trial, the judge might label the business as community property. This makes it eligible for equitable division in your divorce. This blog post is for business owners facing divorce. It highlights key issues regarding your business in this situation.

2. Characterizing Marital Property in Preparing for a Divorce

Ultimately, the classification of your business as either community property or your separate property will happen. If you fail to settle your case by the conclusion of your divorce, a judge will step in to make this determination, deciding if your business counts as community property.

It is up to you to produce evidence to show the court that your business is your separate property. The reason being is that there is a presumption that all property in existence at the time of your divorce is community property.

3. Identifying Your Business as Personal or Shared Property

Business Owners Should Be Aware of the Following Tips to Prepare for a Divorce in Texas

The characterization of your business directly affects the division of your community estate.

If you demonstrate to a judge that your business existed before the marriage, thus qualifying it as your separate property, this fact might influence the division of community property unfavorably for you.

4. Strategies for Dividing Business Assets in a Divorce

As previously mentioned, a judge actively divides the community estate in your divorce fairly and equitably. However, ‘fair and equitable’ does not necessarily mean ‘equal’.

A judge isn’t required to split the community estate into equal parts. A judge typically assesses each spouse’s separate estates to decide on dividing the community estate. Imagine you’re older than your spouse and had a business and property pre-marriage. Your separate estate would be larger.

However, if your separate estate (including real estate and business) is valuable, the judge might give your spouse more community estate. This compensates for their smaller separate estate. While it might seem unfair, it’s a common rationale in Texas divorce property division.

5. Understanding Fair vs. Equal Asset Division

Valuing your business- how it’s done is critical. It is essential to use a qualified and experienced appraiser of companies to help you and your spouse determine the business’ value. The appraiser will use documents like tax forms and financial statements (profit/loss statements, etc.) to help determine its value.

Deciding on an appraiser can be tricky since these folks don’t grow on every tree, plus the fact that you and your spouse will likely have to agree on which appraiser to utilize.

That doesn’t even consider that the appraiser will need to be paid for their services. Your case will have to wait on the appraiser’s determination as to the value of your business to proceed.

You will want to select an appraiser who has years of experience helping people in your position determine the value of a business. There are specific titles that business appraisers hold as opposed to, say, real estate appraisers.

Review the credentials and experience of an appraiser before hiring one. If you cannot locate an appraiser that you trust, it may be time to ask the advice of people in your field of work and have your attorney utilize their network to help in the search.

Questions about your divorce’s effect on your business? Contact the Law Office of Bryan Fagan, PLLC

Business Owners Should Be Aware of the Following Tips to Prepare for a Divorce in Texas

To learn more about how business owners are affected by divorce, please do not hesitate to contact the Law Office of Bryan Fagan, PLLC, today. A licensed family law attorney is available six days a week to meet with you free of charge. Our office represents clients across southeast Texas and would be honored to do the same for you and your family.

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  1. High asset divorces and their effect on Golden Years Divorces
  2. What happens to your business in a Texas Divorce?
  3. How to handle a high net-worth divorce in Texas
  4. High Net Worth Divorce / High Asset Divorce
  5. Business Owners and Business Assets in a Texas Divorce
  6. Attacking the Enforceability of a Premarital Agreement in a Texas Divorce
  7. My Fiancé wants me to sign a Texas Prenup. What should I do?
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  10. When is Cheating Considered Adultery in a Texas Divorce?
  11. Six things You Need to Know Before You File for Divorce in Texas
  12. Texas Divorce Morality Clause: Be Careful What You Ask For

Law Office of Bryan Fagan, PLLC | Business Owner Divorce Lawyer

The Law Office of Bryan Fagan, PLLC, routinely handles matters that affect children and families. If you have questions regarding Business Owner Divorce Lawyer, it’s essential to speak with a Business Owner Divorce right away to protect your rights.

A Business Owner Divorce Lawyer is skilled at listening to your goals during this trying process and developing a strategy to meet those goals. Contact the Law Office of Bryan Fagan, PLLC by calling (281) 810-9760 or submit your contact information in our online form. The Law Office of Bryan Fagan, PLLC, handles Divorce cases in Spring, Texas, Cypress, Spring, Klein, Humble, Kingwood, Tomball, The Woodlands, Houston, the FM 1960 area, or surrounding areas, including Harris County, Montgomery County, Liberty County, Chambers County, Galveston County, Brazoria County, Fort Bend County, and Waller County.

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Contact Law Office of Bryan Fagan, PLLC Today!

At the Law Office of Bryan Fagan, PLLC, the firm wants to get to know your case before they commit to work with you. They offer all potential clients a no-obligation, free consultation where you can discuss your case under the client-attorney privilege. This means that everything you say will be kept private and the firm will respectfully advise you at no charge. You can learn more about Texas divorce law and get a good idea of how you want to proceed with your case.

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