Selling or keeping a business in a divorce

Dividing a company can be both emotionally and logistically difficult for business owners in Texas going through a divorce. Some couples may decide to keep running the family business instead of selling it. This may be because both partners are important for the company's success. While this situation works best if the separated couple can remain amicable, they could still run the company even if they do not get along well. They could change their roles in the company so that they reduce their involvement or contact with one another.

In some divorce situations, one ex will keep the business. However, this involves buying out the other spouse. The buyer will need to get an appraisal first. Not everyone will have the cash on hand to make the purchase, so a payment plan could be an option. However, this might be too onerous, and it also leaves the couple financially entwined for a longer period of time.

Selling the business is another option. The couple could agree in advance about a price they are comfortable with, but they should be aware that they might not be able to wait to get the largest profit. They should also work out the terms and whether they need a noncompete clause.

It's important to note that Texas is a community property state. Therefore, even if only one spouse owns a business, the other may have a claim on half of it. If the person started the business prior to the marriage, the claim may be on half of the appreciated amount. Since the property division process can be complicated for divorcing business owners, it's often wise to seek guidance from a family law attorney.

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