August 28, 2025
If you are in need of a skilled and reputable Austin, TX family law lawyer who has a deep knowledge of and a background of helping Texans with their business law needs, the dedicated team at Gray Becker, P.C. is here to help. We have over a 100 years of collective experience helping Texans with their legal needs and we are known throughout Central Texas for our attorneys’ courtroom success, litigation record, and cost-effective representation.
When a couple goes through a divorce in Texas, one of the most important issues that can arise is how to divide property. Texas follows community property law, meaning most assets and debts acquired during the marriage are jointly owned and subject to division. This includes businesses started or operated during the marriage, even if only one spouse was actively involved. Whether or not a couple’s property is community or separate can be a significant issue in a divorce involving one or more businesses.
In general, any business formed or significantly grown during the marriage is considered community property, unless a valid prenuptial or postnuptial agreement states otherwise. Even if one spouse owned the business before marriage, any increase in value during the marriage could still be viewed as a shared interest if marital funds or effort contributed to its growth.
Dividing a business can be more involved than other property types. It’s not as simple as selling a car or splitting a bank account. Businesses often continue to operate after divorce, which means determining a fair value and deciding how ownership will be handled is essential.
A few options for dividing business interests include:
The court’s goal is to divide community property in a manner that is just and right, which may not always mean a 50/50 split. Various factors can influence this, including the earning ability of each spouse, their involvement in the business, and other assets awarded in the divorce.
Business valuation is often necessary during divorce. This process involves reviewing financial documents, tax returns, and other business records to determine the business’s market value. Courts typically rely on one of several standard valuation methods such as income-based, asset-based, or market comparison.
Both parties may present their own valuation if there is disagreement. In some cases, a neutral third-party expert may be appointed to assist the court.
If you are a business owner, there are steps that may help protect your interest. These can include:
Addressing these and other financial matters such as, how bank accounts are handled in a Texas divorce early on can help reduce potential disputes if divorce occurs in the future.
When Gray Becker, P.C. was started in 1983 our focus was on government litigation and constitutional law. Our practice soon expanded to include business and family law. If you are in need of a legal team that is highly skilled at helping Texans with their family and business law needs, reach out to us today.
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