Protecting Your Business in Texas Divorce Proceedings
Our Pearland, TX divorce attorney provides the professional legal representation you need to protect yourself and your business in Texas divorce proceedings.
In any divorce case, there are important matters pertaining to marital property and assets which must be resolved before a final divorce order can be issued. These have the potential to impact you financially for years into the future. This is particularly true in divorce cases involving business owners. To prevent your spouse from being entitled to a share in your business as part of any divorce settlements or orders issued, it is important to get our experienced Pearland, TX divorce attorney on your side.
Does My Spouse Have a Right to a Share in My Business in a Texas Divorce?
During a divorce, one of the major issues concerns the division of any marital property and assets. This includes homes, land, household furnishings, automobiles, personal belongings, and investments or money in bank accounts. It also includes shares in any businesses owned by either of the parties involved.
Texas is one of nine states which considers marital assets community property. Under the Texas Family Code, this means that both spouses have an equal share in these assets in the event of a divorce. Situations in which your spouse could be entitled to a portion of your business include:
- If you started the business after you got married;
- If you started the business prior to marriage but your spouse worked at it over the years, either on a paid or unpaid basis;
- If your started the business prior to marriage but your spouse contributed ideas or money to it;
- If you started the business prior to marriage but your spouse sacrificed their own career or education to support you and your efforts with it.
Ways to Protect Your Business in a Divorce
Filing for a divorce through the Brazoria County Courts could put your business in serious jeopardy. In addition to being forced to accept your former spouse as a partner, they could gain access to trade secrets and proprietary information while having a say in important business matters they know little about. You could also be forced to sell the business or share in all future profits if certain precautions are not taken. Ways to prevent this from happening and protect business include:
- Get a prenuptial or postnuptial agreement limiting your spouse’s rights to your business in the event of a divorce;
- Include stipulations in your company’s governing documents that require a divorced partner’s shares be sold directly to the company;
- Hold shares in your company in a trust, which can limit your spouse’s access;
- Agree to surrender other types of marital property, such as the family home, in order to protect your rights regarding your business.
Request a Consultation with Our Pearland, TX Divorce Attorney
To protect yourself and your business in the event of a divorce, reach out to Pearland divorce attorney John Powell III, P.C. Call or contact our office online and request a consultation today.