Role of Prenuptial and Postnuptial Agreements in Protecting Business Assets
Prenuptial and postnuptial agreements can play a crucial role in protecting business assets in the event of a divorce. These agreements allow couples to decide how their assets would be divided in a divorce, overriding the default community property laws. For business owners, this can provide valuable protection for their business assets.
Impact of Length of Marriage on Property Division
The length of the marriage can also influence how property is divided in a divorce. In general, the longer the marriage, the more likely it is that the court will divide the community property equally. However, the court also considers other factors, such as each spouse's earning potential and financial needs, when deciding on property division.
Business as Community Property: Possible Scenarios
If a business is considered community property, it will be subject to division in a divorce. This could mean selling the business and dividing the proceeds or one spouse buying out the other's interest. In some cases, the spouses may continue to co-own the business after the divorce. The exact scenario will depend on various factors, including the nature of the business, the spouses' relationship, and their individual skills and interests.
Business as Separate Property: Protection and Exceptions
If a business is considered separate property, it is generally protected from division in a divorce. However, there are exceptions. For example, if the non-owner spouse contributed to the growth and success of the business during the marriage, they may be entitled to a portion of the business's increased value. Additionally, if community funds were used to support the business, the community may have a claim to a portion of the business.
Role of a Forensic Accountant in Protecting Business Assets
A forensic accountant can play a crucial role in protecting business assets in a divorce. Forensic accountants specialize in investigating financial matters and can help identify and value assets, detect financial irregularities, and provide expert testimony in court. Their expertise can be invaluable in complex divorce cases involving business assets.
What Happens if My Business Started Before Marriage?
If your business started before your marriage, it is generally considered separate property and is not subject to division in a divorce. However, if the business increased in value during the marriage, or if community funds were used to support the business, your spouse may be entitled to a portion of the increased value or investment.
How Can I Keep My Business Separate from Marital Assets?
There are several strategies for keeping your business separate from marital assets. These include creating a prenuptial or postnuptial agreement that specifies the business as separate property, not using community funds to support the business, and compensating the non-owner spouse for their contributions to the business.
It's important to consult with a lawyer to determine the best strategy for your situation.
Contact Our Attorneys at Diggs & Sadler
If you're a business owner facing a divorce in Houston, Texas, it's crucial to have experienced legal support to protect your business assets. At Diggs & Sadler, our team of skilled attorneys has extensive experience in handling complex property division cases, including those involving business assets.
We understand the unique challenges that business owners face in a divorce, and we're committed to providing the strategic advice and strong representation you need. Contact us today to learn more about how we can help you protect your business in a divorce. (713) 766-5355