The entrepreneurial spirit is alive and well in Texas and elsewhere in the country. The desire to be one’s own boss and follow one’s passion drives many people to start their own businesses. While many businesses do fail, others do not. Many entrepreneurs go into a venture with or without the support of a spouse. In the event of a divorce, the business may become a contentious issue in property division negotiations.
In one example, a woman who had gotten degrees in landscape architecture and business decided to start her own landscape design business as she did not wish to work for anyone else. Her husband complained about her long hours but not about the income and was not directly involved in the business. When the two decided to divorce, the husband realized the value of his wife’s company and wanted half of it in the divorce settlement.
No one enters into a marriage expecting to divorce. There are steps that can be taken to protect one’s property or business in the event that the marriage breaks up. One solution is to have a prenuptial agreement that lays out the future division of assets. If that is not possible, there is also the possibility of a post-nuptial agreement.
Regardless of whether a couple is contemplating divorce in Texas, it is a good idea to protect individual property. A business owner who owns a business, independently or with a spouse, can benefit from having an agreement that spells out the details of the ownership and each person’s share in the property. In the event of the need to engage in property division negotiations, this will offer protection to the principals involved.