Owning your own business is something you should be proud of. It is difficult to get a business off the ground and continue to help it evolve throughout the day-to-day trials and struggles. It is therefore upsetting when you become aware that your business may be subject to an ex-spouse's oversight if you are in the process of a heated divorce. Your business ownership interest is subject to division during divorce proceedings. If you need guidance during the valuation process and division of a business interest, contact an experienced family law attorney today.
Business ownership interests take on many forms and can include closely held corporations, partnerships, LLCs, and other corporate versions.
Sometimes two spouses can work together in a business after the divorce if they are both co-owners in the business, but this is often a rare occurrence. You have several different options as a business owner during a divorce:
Despite the community property status of Texas, your business interest may not be community property if you began your business prior to the marriage. Only a business which started during the marriage will be considered community property and will be owned with your spouse 50-50. Additionally, a business which was formed by using "separate property funds" will be considered separate property.
However, even though a business may be considered separate property of one spouse, the other spouse may have contributed valuable time and energy into growing the business, and should therefore be entitled to an ownership interest.
Valuation of the business may be difficult if it is a small business. Small businesses often value the business based on the current assets and liabilities of the business or any expected profits. However, you may also value a business based on a similar business which recently sold. The valuation process can often be quite complicated, and it is important to get the insight and skill of an experienced family law attorney.
If you are going through a divorce and attempting to divide a business or business assets, you are probably overwhelmed with the process as a whole. However, it is important not to lose hope. You have worked hard to develop a successful business, and a personal matter should not affect any part of your business. Attorney Ned Gill in Bellaire is experienced in assisting clients with business valuation and the division of business assets.
Contact our office today for your free initial consultation and we will guide you toward the best solution which allows you to continue to run and maintain your business.