Is My Spouse Entitled to Take Half of My Business in Divorce?
Is my spouse entitled to half of my business if we divorce? This is a common question that comes up when couples go their separate ways in Texas. While going through a divorce is often difficult for the parties involved, the divorce process can be much more challenging when you own a business. That’s because a business is often the most valuable asset held by an individual or couple.
The answer to whether or not your spouse is entitled to half of your business in Texas depends upon when the business was started, what funds were used for it, and many other considerations. A knowledgeable attorney can help you understand your legal options and how best to protect your assets – including your business – when you’re facing divorce.
Texas is a Community Property State
Unlike some other states, Texas uses a community property system for marital assets. Assets that spouses get or create during the marriage may qualify as community property under Texas law. That means you’ll need to know when the business was started and what resources were used to grow the business before you’ll know whether your spouse may get half.
If you started a business during your marriage, it may qualify as community property. That means your spouse might be entitled to half of it. But if you started the business before you got married, it may be separate property, and your spouse might not have rights to it.
Keep in mind that many factors could complicate the issue. For example, suppose you or your spouse invested marital resources, activity, or money in the business. In that case, your spouse could have an interest in it, even if you started the business before your marriage. There are many factors that could complicate the determination as to who gets what, so speak with an experienced attorney to understand more about what rules may apply.
What Happens If the Business Is Community Property?
If the business is community property, it’s critical for you and your spouse to know each other’s objectives and what you’re looking for. In many cases, business owners want to keep their business running but don’t know the best path forward through a divorce. If you find yourself holding a business that is community property and is tied up in a divorce, you may have options including:
- Selling the business and dividing the sale price with your spouse
- Continuing to operate the business jointly through the divorce and beyond
- Buying out the ownership interest of your spouse
- Selling your ownership interest to your spouse
The outcome of your business in a divorce proceeding will depend upon your needs, your goals, and the facts of your situation. That’s why it’s so important to have a deep understanding of your business and how you and your spouse want it to move forward.
Speak with Our Divorce Lawyers Today
If you own a business and you’re unsure of what may happen in a divorce, reach out to the Dallas/Fort Worth divorce lawyers of Hargrave Law, PC, today. Our experienced attorneys have helped people throughout Texas in divorce proceedings for over twenty years, and we’re focused on finding solutions that work for you.
You should expect personalized, attentive service from your attorney from day one, and that’s exactly what we provide. We’ll take the time to understand your concerns and goals, then we’ll work on developing a legal strategy that meets your needs. We’ll keep you informed during every step of your case, and we’ll stand by your side throughout the entire process.
To learn more about how we can help at a confidential, no-obligation consultation, contact us at 817-282-0679 or get in touch online today.