As a Texas business owner, you may have spent years developing your plan and initiating a startup. Once your business started turning a profit, you may have shifted your focus to protecting your assets or building a diverse investment portfolio. While you may not have expected to be filing for divorce, once you made the decision, you no doubt started to think about the implications a divorce might have on your business and finances.
Things get messy if business funds and personal funds were mingled
It’s always best to keep business expenditures and funds separate from personal monies. If you dip into your jointly owned bank account to make purchases for your business, it can complicate matters when it comes time to distribute marital property in your divorce. The opposite is true as well. If you draw funds from a business account to cover personal expenses, it can be difficult to sort it all out in a divorce.
A business valuation and income records may influence the court’s decisions
How much your business is currently worth, as well as how much income you earn and what your potential future income might be, may have a significant impact on your settlement. If the court disagrees with your assessment regarding income, business assets, etc., the amount of spousal support you’re ordered to pay may be higher than you expected.
Provide accurate information to the court regarding business debts
The more organized your business financial records are, the better able you’ll be to provide the court with all necessary information, especially regarding any debt your company happens to owe. Clear documentation is important, regarding issues such as how much money is owed to whom, as well as where prior existing funds have been spent.
Has your spouse provided financial support to your business? Are you co-owners of the company or did you sign a prenuptial agreement to establish separate ownership before marriage? These and many other issues may influence the court’s decisions when property division proceedings commence.
Protect your rights and financial interests at all times
There’s no way to predict which marriages will last a lifetime and which will end in divorce. As a Texas business owner, it’s only natural that you want to make sure you walk away with all that you’re entitled to in a settlement. You’ve worked hard to create successful business, and you don’t want to lose any more than necessary.
Learning as much as you can ahead of time about the property division laws of this state can help you be better prepared for court. You may be able to avoid going to court altogether if your spouse is open to alternative dispute solutions, such as mediation. It’s also wise to know where to seek additional support as needed, such as by scheduling a consultation with a legal team who is well-versed in all legal options pertaining to divorce.