Unless you already have an agreement with one another, the division of your property as you prepare to divorce is typically a major challenge. However, it is more difficult for some couples to handle property division matters than it is for others.
The more valuable your personal assets are, the more aggressive your disputes about property division may become. When you own a business with your spouse or acquired a company during the marriage, that business will inevitably create challenges for the two of you as you negotiate property division matters. How will a business complicate your divorce?
1. It can be hard to value and divide a business
Property division requires thorough disclosure to one another and an understanding of what all of your assets are worth. For those with complex assets like businesses, there can be a lot of subjectivity to the valuation process.
The two of you may disagree about what the company is worth or about how much revenue it will likely generate in the upcoming years. You may also disagree about the proper way to handle the business. You may want to buy your spouse out, but they may want to sell the company and share the proceeds. It can be a challenge to both determine what the company is worth and find a way to share your ownership interest with one another.
2. The business may be your primary source of income
It is quite common for both spouses in a marriage to work at the family business. It may be your primary income for the entire household, and that can be a challenge for the two of you after divorce.
Will you both continue working at the business, or will one of you leave? Your negotiations will have to integrate the impact of someone leaving their position at the company or result in the creation of contracts to very carefully address the risk involved in continuing to work together after divorce.
Any Texas business owner contemplating the end of their marriage could benefit from proper legal advice and a thorough review of household finances. Setting clear priorities as you prepare for divorce and identifying likely challenges will be important for those who want to minimize the impact of the end of their marriage on the business that they own.