How To Protect A Business During A Divorce

Divorce is a complex, emotional subject, and it can become even more complicated when you own a business.

At The Law Office of J. Gregory Whitten P.L.L.C., in Allen, Texas, we know how to protect businesses from divorce. Attorney Gregory Whitten has a degree in finance and has years of experience with divorces that have business-related issues.

Shielding A Business From The Effects Of Divorce

Texas is a community property state, which means all assets and liabilities acquired during a marriage are presumed to be community property. During a divorce, the court divides assets and liabilities on a "just and equitable" basis. When a business is involved, the process can become complicated.

Here are four ways to protect your business from negative impacts of divorce:

  • Prenuptial agreements. "Prenups" can be a simple way to protect the business and both of the spouses.
  • Postnuptial agreements. These are essentially the same as prenups, except the agreement is made after the couple has gotten married.
  • Have buy/sell agreements. Written agreements with business partners can have provisions that determine what happens if a divorce occurs. For example, the partner who is getting the divorce can be required to sell his or her shares to the other partners.
  • Have a healthy relationship regarding the business. You and your spouse might not have been able to stay married, but that does not mean you cannot see eye-to-eye regarding what is best for your business.

Another huge issue with businesses and divorce is determining what the business is worth. Attorney Whitten has extensive experience with questions that surround business valuation.

Speak With An Attorney About Your Business And Divorce Issues

At The Law Office of J. Gregory Whitten P.L.L.C., in Allen, Texas, we have the knowledge and experience that is needed to deal with the complexities involved with businesses and divorce. If you would like to speak with a lawyer, call us 972-632-3662 or contact us through our website.