Unfortunately, some of the best entrepreneurs get divorced. In some cases, the demands of opening a new business put a strain on marriage and partners decide to go their separate ways.
If you own a business and are heading for divorce, there are a few things you should know about preserving your company. In Texas, when the divorce proceedings begin, it may be too late for you to make some legal moves that could keep your business from becoming your ex’s property.
Keep your documents on file
Be sure to keep accurate records. Make sure your family financial documents are separate from documents pertaining to the business. You should also avoid paying for business supplies or expenses with household funds.
If you use your family’s assets to build your business, your attorney may claim that your ex is entitled to some of your business assets. If you don’t pay yourself enough with hopes of selling the company when you retire, you could end up giving your spouse more than you intended in the divorce.
Fire your spouse
If your spouse is working for your business or actively involved in operations, you should “fire” them once you know you are headed for divorce. This transition may be gradual, but the more your ex is involved, the more an attorney may argue that your ex should receive profits from the company. This is especially true if your spouse helped you build your business.
An experienced family law attorney could guide you through the divorce proceedings and help you retain your company and your finances once your marriage has ended.