Legal professionals of Reuter Law Group, PC
Will you have to sell your business during a divorce?

Will you have to sell your business during a divorce?

On Behalf of | Apr 18, 2024 | High-Asset Divorce |

Divorce is rarely easy, especially when it involves the division of assets such as a business.

Many business owners facing divorce in Texas want to keep ownership of their company. Is this realistic? Might you have to sell?

Separate property

About 3.1 million small businesses operate in Texas. If you owned your business before marriage or inherited it during the marriage, it might be separate property, not subject to division. This argument can be complex. It may require evidence to support your claim. However, it can be a viable option to explore if you wish to retain sole ownership of the business.

Settlement negotiations

If your spouse has rights to the business, negotiation is often key. You may be able to reach a mutually beneficial agreement with your spouse regarding the business’s ownership. Options include buying out your spouse’s share of the business or offering other assets in exchange for retaining ownership.

Business valuation

You must determine the value of your business. A professional appraiser or an assessment of financial records can help establish an accurate valuation. Showing the business’s worth can strengthen your position when negotiating asset division.

Court intervention

If negotiations with your spouse stall, the court may intervene to determine asset division. In such cases, the court will consider various factors, including each spouse’s contribution to the business and financial circumstances.

It is important to protect your interests throughout the divorce process. This may involve gathering evidence to support your claim to separate property or demonstrating your contributions to the business’s success.