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Going through a divorce as a company owner

On Behalf of | Nov 6, 2015 | Firm News

When Texas entrepreneurs are heading towards divorce, they may be worried that the divorce could negatively affect their business. In some cases, there are some valid causes for concern, especially if their spouse was involved in the startup of the business or played a part in the growth of the business. Regardless, there are some things that entrepreneurs should think about when going through the divorce process.

Before filing, owners should have a plan in place. This includes determining what assets are part of the company. The entrepreneur may be required to sell a part of the company to their spouse as part of the divorce agreement, but keeping the end goal in mind may help make this process go much more smoothly. Keeping communication open and coming out of the divorce on friendly terms if possible may also help the entrepreneur get what is wanted in terms of the company.

If the entrepreneur started the business before the marriage, the other spouse may not automatically be entitled to half of the company. In many cases, only the portion of the value of the company that is attributable to the period that the couple was married will be treated as marital property by the court.

When an entrepreneur is facing the end of a marriage, the effect on his or her company will often be determined by the approach that is taken. In some instances, an offer to give the other spouse assets that are roughly equivalent in value to half of the company can be acceptable. A family law attorney can often assist a divorcing entrepreneur in negotiating such an agreement.