Texas business owners who are thinking of a divorce may wonder how it may affect their business holdings. Planning ahead may help protect a business and specific areas might be worthy of consideration. Having good communication between partners during a divorce may make the process easier and help it go more quickly. Keeping in mind what the other spouse might want in terms of division of assets may help avoid being blindsided by something that was unanticipated.
Becoming familiar with the divorce process in the state a business owner lives may be a good first step. Knowing what all the assets are and keeping paperwork and records in order and well organized is important. Dividing business assets in a divorce might be handled differently than other assets and may depend on the other spouse’s role concerning the business. Some considerations are whether the a spouse worked in the business, how long the couple was married and other ways the ex-spouse contributed to the business while married. If the business is co-owned, this may raise questions such as whether a buyout by one partner is possible.
A business owner who is facing the end of a marriage needs to understand the ex-spouse may be entitled to some portion of the business or its assets. Emotion leading to disagreements may lengthen the time it takes to get a divorce and that might cost the couple more money in the long run than it would if they were cooperative.
The property division stage of a divorce can often be contentious, but business owners may want to realize that if an agreement can be worked out, the result may be better for both parties than if the decision is left up to a judge. A divorcing company owner may want to have the assistance of an attorney in negotiating a property settlement agreement that can then be presented to the court for its approval.