Woman entrepreneurs are on the rise in Texas and business is flourishing. But with hard work sometimes sacrifice is not too far behind. For women who own businesses and see that a divorce is not far off, understanding the unique financial challenges involved is imperative to making important decisions about the structure of the business and the property division that will follow.
Although a prenuptial agreement is often advisable when one or both spouses enter the marriage with assets, not everyone heeds this advice. When the assets gained are acquired during the marriage, they are typically considered community property. Regardless, knowing what the company is currently worth, the potential future growth and any and all liabilities before direct negotiations begin will help move the process forward.
Once a grasp of the company's worth is attained, figuring out how to structure a division of a business asset should be considered. Should direct negotiation with the other party not lead to the results desired, the issue can be submitted to a family court judge to make a decision. The judge will consider all relevant factors.
Understanding the laws in Texas with regard to property division is crucial when seeking to negotiate the division of business interests with an ex-spouse. The financial implications, not only for the business but for the parties involved can be far reaching. A family law attorney can help entrepreneurs going through or considering a divorce to understand the possible impact of a a marital breakup on the business.
Source: Forbes, "How Divorcing Women Entrepreneurs Can Get What They Deserve", Kerry Hannon, Nov. 2, 2017