People in Texas who start their own business put a great deal of effort and money into ensuring the company’s success. As a result, a business owner can become extremely protective. However, having a business can require special considerations during a divorce. Unfortunately, some people receive some misguided advice regarding businesses as part of asset division.
Even if the person’s spouse put little money into the business, it is likely that he or she contributed in some way — either through working at the business or helping to bring in customers or clients. It is difficult for a judge to determine exactly whose contributions are more valuable, likely resulting in an equitable division. Fighting to show which person’s contributions were more meaningful could result in longer and more costly proceedings.
Some may be tempted to agree to take the whole business, leaving everything else to his or her spouse. While such an agreement could resolve a divorce sooner, it could also lead to feelings of regret. Unfortunately, once an agreement is made, there are few things that can be changed. To alter terms already decided upon often results in significant expense.
Because of the emotions involved with the end of a marriage, many people want to rush through proceedings in order to begin the next stage of their lives. However, taking time to make decisions based on rational thought rather than emotion can be beneficial in the long term. Many in Texas have also found the advice of an experienced divorce attorney to be beneficial as they make decisions that will impact the rest of their lives.
Source: Portland, OR The Business Journals, “3 suggestions business owners going through a divorce should ignore“, Lewis I. Landerholm, Nov. 15, 2016