Protecting Your Business During Divorce

If you are a business owner who is about to file for divorce or are already in the midst of one, our Austin, TX divorce lawyer knows the importance of protecting owners and their interests, brands, and identities during the process. Gray Becker, P.C. started helping Texans with business law and a range of legal needs in 1983, and since then we have grown to have a substantial focus on family law. If you would like to learn more about protecting your business during a divorce, we are here to help.

Divorce can impact many parts of your life, including your business. Whether you own a small local shop or a large company, the way your business is handled in divorce proceedings can make a long-term difference. If you are unsure of whether you want to move forward with a divorce, knowing the signs that you might need a divorce lawyer immediately can be helpful.

Understand If Your Business Is Marital Property

One of the first things we help clients determine is whether the business is considered separate or marital property. If you started or significantly grew your business during the marriage, it may be considered part of the marital estate. Depending on a few factors, businesses are sometimes considered to be marital property. If this is the case, it is important to know what the legal options for dividing marital property are.

Keep Clear And Accurate Financial Records

Accurate financial documentation is one of the most useful tools in protecting your business. Keeping your personal and business expenses clearly separated can help establish how much of the business is tied to your individual efforts and how much may be subject to division. Tax returns, profit and loss statements, payroll records, and bank statements are all documents that should be maintained and made available when needed.

Consider A Business Valuation

In many divorces, a valuation of the business is necessary to determine how much the business is worth at the time of divorce. We work with financial professionals when needed to assess the fair market value of the company. This can help guide settlement discussions and clarify whether a buyout, offset, or other arrangement is most appropriate.

Limit Involvement Of Your Spouse

When possible, minimizing your spouse’s direct involvement in the business may reduce complications. If your spouse has no ownership interest or active role, it may be easier to argue that the business should remain yours. If both spouses are involved, discussions will likely need to include how to fairly resolve ownership, future roles, or compensation.

Discuss Settlement Options Early

Reaching an agreement outside of court can save time and reduce stress. In some cases, a business owner may offer to give up other assets in exchange for keeping full ownership of the business. We can walk you through these options so that you understand what you’re agreeing to before making any decisions.

If you are a business owner who has worked hard to get and keep your business successful, and want to continue to be able to do this, it’s important to discuss your situation with a lawyer who is experienced with dealing with this before and who understands the importance of protecting your rights, especially when it comes to your business. Gray Becker, P.C. can help, reach out to us as soon as you are ready.