Property Division and the Family-Owned Business in a Divorce
A family-owned business can be one of the more complicated matters to deal with in a divorce settlement. Since Texas is a community property state, assets acquired in the business during the marriage will need to be divided between the two spouses, or some other arrangement will have to be made. It is important that you work with a Bryan divorce lawyer who can help you make the most reasonable decision.
Dividing the Family Business
The most optimal situation would be for a couple to have made an agreement about a family owned business in a pre-nuptial. However, if this was not done, or if the business was started during the marriage, .
In most cases, a judge will award the business to a family member who ran the business. In return, the other spouse will be awarded certain other assets so that an equitable division occurs. If both spouses run the business, the court will likely offer each spouse to buy out the other. In a case where no agreement can be reached, or neither spouse has the means to buy out the other, the court may decide that the business be sold and assets distributed equally among the parties. Sometimes both divorcing spouses can continue to work together in the business, and if they can prove that this is the case, they may both be awarded the business equally.
Valuing the Business
If one spouse buys out the other or is awarded the business, the court will need to determine a value for the enterprise. Usually such records as tax returns, financial statements, and bank account records will be used in this determination. The court must then decide how much of the business each spouse owns.
For Answers to Questions and Further Information
It is very important for a person divorcing where a family business is involved to have a clear idea of how to proceed. A Bryan divorce attorney can help you with this complicated matter and fight to protect your rights. Call Peterson Law Group today at 979-703-7014 or 936-337-4681.