When marriages are failing and businesses are at stake, many Texas couples fear that their divorces will mean the ends of their businesses. The fact is, it can take years to build a family business. In some cases, family businesses are handed down through generations. As such, it is vital to protect that business in the face of any financial threat, including divorce.
For divorcing business owners in Texas, there are several options for the division of a family-owned business. The first option, which is the most common, is for one spouse to buy out the other spouse’s share in the business. The second most-common option is for the business to be sold with the spouses dividing the assets as part of the divorce settlement.
The third option is not very common, but it can work for some couples. In this scenario, the business remains jointly owned by both spouses after the divorce. In some cases, one spouse operates the business and pays his or her ex-spouse a portion of the business’s profits, while, in other cases, the spouses continue to jointly own and operate the business.
If divorce is in your future, you may wish to consider contacting the Law Office of Michael D. Tracton, P.C., for answers to your questions concerning both divorce and family-owned businesses. Mr. Tracton will carefully review the organization of your business and explain your options for property division in Texas. If you would like to learn more about our firm’s services, you can visit our website where you will find more information.