A divorce can be stressful for anyone, but things are even more complicated if you own a business. Building and operating a business takes time, effort, and money.
In the video, Atty. Tyler Monahan of Turner-Monahan, PLLC, gets into the details of whether a business can be divided during a divorce process. All case evaluations at Turner Monahan PLLC and suggestions that the attorneys make are in the light of Texas Family Law. This content is for educational purposes only.
Can The Business Be Divided During Divorce?
The question of “whether or not a spouse can take your business in a divorce” depends on whether your business is deemed community property or separate property. There can be cases where even if a business is determined to be separate property, reimbursement claims could be against that business.
So, if you have an issue regarding your business and you’re married, and a divorce has been filed. Then, you need to ensure that you retain an attorney who understands how businesses, property, and assets work in a divorce regarding separate property and community property.
Separate Property
Separate property in Texas is any property that is not considered marital property. This can include things like property acquired before the marriage, gifts from family or friends, and income or assets kept separate from the marital estate.
In general, separate property is not divided between spouses in a divorce. However, there are some exceptions to this rule. For example, if one spouse uses separate property to help support the marital estate, it may become partially marital. Alternatively, if a spouse mixes separate property with marital property, it can become partially marital as well.
If you have questions about what is considered separate property in Texas, please read our blog post.
Texas Is A Community Property State!
A community property state is where all property acquired by a couple during their marriage is considered jointly owned. This includes the marital home, vehicles, and other property. In addition, in a community property state, any debts incurred by the couple are also considered to be joint liabilities.
Under Texas Family Code, Chapter 3, Section 3.002, it is stated that:
“Community property consists of the property, other than separate property, acquired by either spouse during marriage.”
In addition, if you are a business owner, you will have to prove that it is under your sole ownership. That is because Sec 3.003, “Presumption of Community Property” states that:
(a) Property possessed by either spouse during or on dissolution of marriage is presumed to be community property.
(b) The degree of proof necessary to establish that property is separate property is clear and convincing evidence.
To know more about this and about prenuptial agreements, click here.
Hire An Experienced Texas Family Attorney
No two divorces are exactly the same, but there are some general things to keep in mind if you own a business and are going through a divorce. Make sure that you go through the Texas Family Code, Chapter 3.
In addition, it is important to speak with an attorney who can help you understand your rights and options. Talk to attorney Tyler Monahan and schedule a free, no-obligation consultation to discuss the details.
In addition, check our website for more information about our services. Go through our blog to find out more regarding your case. There is tons of information on divorce and answers to unique questions like I Am In The Military. How Should I Prepare For Divorce?
FAQs Regarding Divorce
Divorce cases are unique, so you will have many questions. To save you time and hassle, here are some topics that revolve around the area. For more information, contact our firm, Turner-Monahan, PLLC.
- Choosing Between Mediation, Trial, And Arbitration. Which Is The Best Alternative?
- What is the difference between sole and shared custody?
- What Is The Difference Between Prenuptial And Postnuptial Agreements?
- What Is A Common-Law Marriage? Can I Get A Divorce From It?
Disclaimer
The commentary and opinions are for informational and educational purposes only and not to provide legal advice. You should contact an attorney in your state to obtain legal advice concerning any particular issue or problem. You can become a client and enter the attorney-client privilege only after hiring Turner-Monahan, PPLC, by signing a written retainer agreement.
