August 25, 2025
When it comes to family law matters, especially when they are entwined with a business, the dedicated team at Gray Becker, P.C. knows that it’s not just about the legal issues at hand, it is personal because it involves family. If you are in need of a skilled Austin, TX family law lawyer, our firm has over 100 years of collective experience practicing law. We are available to help with all aspects of family as well as business law.
In Texas, community property laws apply to most divorces. That means most assets and debts acquired during the marriage are subject to division. If your business was started or grew in value during the marriage, it may be considered community property—even if your spouse wasn’t involved in running it. Determining whether your business is separate or marital property is the first step and knowing your legal options for dividing it if it is marital property is important.
Keeping your business and personal finances separate is an important practice, especially if divorce becomes a possibility. Mixing personal and business funds can make it harder to argue that the business is a separate asset. Using joint funds to support the business or making your spouse a co-signer can complicate the division process and create claims to ownership or value.
If your business is your primary source of income, it’s important to pay yourself a reasonable salary. If profits are left in the business rather than taken as income, it could affect spousal support and property division calculations. Paying yourself a fair wage helps create a clearer financial picture and can avoid disputes about hidden or unreported income.
Legal documents can play a significant role in protecting your business. Partnership agreements, shareholder agreements, or operating agreements should include terms that address ownership in the event of divorce. These documents may restrict transfer of ownership or establish rules for valuation. If your business has multiple partners, having these protections in place can provide clarity and reduce conflict.
One of the most effective ways to protect your business is through a prenuptial or postnuptial agreement. These contracts can specify that the business is separate property and lay out how it will be treated in case of divorce. This can prevent future disputes and reduce uncertainty during divorce proceedings.
If your business is subject to division, it will need to be valued. This process can include reviewing financial records, assets, liabilities, and future earnings. Having clear, accurate, and well-organized financial records will help make the valuation process smoother and may help support your position.
Protecting your business during divorce starts with preparation and continues with strong legal support. Whether your business is large or small, treating it with care and planning ahead can help protect what you’ve built.
If you need help recognizing the signs you need a divorce lawyer or how to protect your business during a divorce, or if you have questions about any family or business law matters, the skilled and compassionate team at Gray Becker, P.C. is here to help. Reach out to us today to see how we may be able to begin finding solutions to your legal problems.
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