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Divorce For Business Owners Attorney in League City

Serving Clear Lake, Friendswood and the surrounding areas

Business owners going through a divorce are naturally very concerned about what will happen to their business during the proceedings. Texas is a community property state, which means that marital assets such as a business are divided during a divorce in a manner that is “just and right”. That does not always mean an even 50/50 split. It is crucial to work with a divorce lawyer that can determine if your business is marital or separate property, and that can help you come to a resolution that is most appropriate for you when dividing it.

Determining if a Business is Marital or Separate Property

Marital property includes any debts or assets that were acquired by the couple during the marriage. Separate property includes debts and assets a person acquired on his or her own and brought into the marriage. As such, it is natural to assume that if one spouse started the business before getting married, it is considered separate property. Unfortunately, it is not that simple.

Even when a business was acquired prior to the marriage, it can still be considered community property. For example, if the profits from the business were ever used to contribute to the marital household, it may be considered community property. Or, if the business’ revenue was placed in the same bank account used by the couple jointly, it could also be considered community property by the actual of commingling the funds. There are ways to trace the source of the funds – both into and out of the joint account, but this can be complicated and require the assistance of trained forensic accountants.

So, if your business is considered community property, how will it be divided during a divorce?

Dividing a Business During Divorce

When a business is considered marital property, it is subject to the property division rules of the state. Of course, it is not practical to divide a business in half, so there are three ways your business may be divided.

The first way to divide your business is to buy your spouse out of the business. The value of the business is assessed, and you will pay your spouse for their half (or percentage portion) of the business. In this scenario, a judge may award your spouse something of equal value during property division proceedings, such as the marital home, and you keep your business without making any payments to your spouse.

The second scenario for dividing your business involves selling it. After the business is sold, the proceeds are then divided between you and your spouse. Businesses are often divided this way when the spouses cannot agree how to divide the business, or when the business is not profitable enough to adequately compensate the spouse that will give up ownership of it. If the company is incorporated or otherwise subject to articles of formation and bylaws, it is possible the entity has established rules for the event of a divorce or death of a partner.

Lastly, you and your spouse may decide to continue to run the business together and continue to split the profits/losses. This is the rarest way to divide a business, but it is appropriate in some situations.

Musemeche Law Can Help You Keep Your Business

If you are a business owner that is getting a divorce, our League City divorce lawyer Rob Musemeche at Musemeche Law, P.C., can help. We will ensure your business value is assessed properly, and will work hard to secure the most favorable outcome for you. Call us today at (281) 809-9757 or contact us online to schedule a meeting with one of our experienced attorneys.

our testimonials

  • I had a very good impression of the entire staff, so I’m giving it a 5 star.

    “Robert was very helpful and attentive during my consultation with him, he answered all my questions in the best way he could and I had a good experience at this place.”

  • I always felt very comfortable and taken care of the entire time.

    “Robert Musemeche was exactly what I was looking for when needing a lawyer for my recent divorce. Not ever having needed a lawyer before, I was a bit nervous in finding one.”

  • This law firm and it's entire staff, attorney included, have given me hope.

    “I have been impressed with the professionalism and fairness we have experienced. I am very grateful to have a law firm I trust. Highly recommend.”

  • He also got me everything I asked for in my case including child custody and all. His assistant Kenda, is an amazing woman.

    “Rob is very easy to work with. He helped keep me calm during my divorce process and assured me everything would be alright. I felt as his billing was efficient and that for what he did in 2 months for me, the price was perfect.”

  • He’s very straight forward and makes sure you are aware of everything that’s going on. Staff is just as kind and considerate!

    “Wow!! For family matters this is the lawyer you want on your side! Not only does he get the job done but will explain every possible direction and have it covered!”

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