Splitting Business Assets During a High Asset Divorce

 Posted on May 31, 2019 in High Asset Divorce

One of the most difficult components of many high asset divorces involves the division of business assets. Although having a pre or postnuptial agreement can make this process much simpler, not all couples enter into these types of agreements, which means that either a court or the parties themselves will need to decide how any business interests will be split. To ensure that the division of your marital assets, including any business interests, is fair and equitable, please contact an experienced high asset divorce attorney who is well-versed in Texas law and can advise you accordingly.

Is There a Premarital Agreement?

If a couple entered into a premarital agreement and one of the parties already owned a business at the time, then the fate of that company in the event of divorce should have been included in the agreement. In these cases, how the business’ assets will be divided depends on the terms of the agreement, which could mean a number of different things. For instance, the parties might have previously agreed that the entire company would go to one spouse in the event of divorce, or that both would receive an equal share.

Just because a couple did not enter into a premarital agreement before getting hitched, does not mean that they are out of luck when it comes to dividing their business upon divorce, as married couples also have the option of entering into postnuptial agreements that account for these types of assets.

The Importance of Accurate Business Valuations

Whether a company operates on a large scale, or is a relatively small family business, reaching a fair settlement is impossible without knowing the exact value of the business itself. Similarly, if one spouse wants to buy out the other’s ownership interest, the parties will need access to a thorough and accurate valuation. Unfortunately, obtaining a business appraisal is a complex undertaking, especially if stock options and less tangible assets are included, making it especially important for divorcing couples who business interests, to speak with an experienced attorney who can ensure that any valuations are conducted accurately and fairly.

Keeping Negotiations Civil

It is important for couples with shared business interests to focus on keeping their negotiations amicable, as any disagreement could sully their company’s reputation, ultimately affecting its profitability. This is especially important for couples involved in high asset divorces, as these individuals are much more likely to receive negative publicity for lashing out at their partners publicly. Ultimately, this type of conduct can adversely affect a company’s brand, so couples with business interests who decide to end their marriages are encouraged to exercise discretion during the high asset divorce process.

Call Today for Help with Your Case

To find out more about how we can help you with your own high asset divorce, please call 512-610-6199 to speak with the dedicated Georgetown high asset divorce lawyers at Powers and Kerr, PLLC today. Our legal team is eager to assist you throughout each step of your case.

Source:

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.4.htm