You’ve worked long and hard to build a successful Texas business. The last thing you want to have happen is to lose more than necessary in property division proceedings during a divorce. When you’ve decided to move on in life without your spouse, it’s best to create a plan that helps you avoid financial disaster, especially where your business is concerned.
Before you can protect your assets in a divorce, you must be fully aware of all that you own. When was the last time you conducted a valuation of your business? Before heading to court, you’ll want to compile a thorough list of all assets and liabilities — not only those pertaining to your business but your personal finances, as well.
Make sure all documentation is in order before divorce proceedings
In a high-net-worth divorce, especially when you’re a business owner, the financial aspects of proceedings can be quite complex. Texas is a community property state, which means the judge will undoubtedly split all marital property 50/50 between spouses. To avoid getting the short end of the stick, make sure you gather all relevant documents ahead of time, including bank accounts, business accounts, retirement policies, tax information, credit card account information, investments, stocks, bonds, etc., and any other paperwork associated with your finances.
Know the difference between well-meaning advice and professional advice
Perhaps your business colleague recently finalized a divorce or someone else wants to offer you financial advice as you prepare for your own divorce proceedings. While a person’s intentions might be pure, if you take advice from the wrong people, you might live to regret it.
It’s always best to speak with someone experienced in financial matters, as well as Texas property division laws. By doing so, you can discuss your business and divorce in detail, which can help you devise a list of needs and goals. If you started your business before you got married and your spouse has never been involved in it, the state might consider it separately owned property in a divorce, especially if you have a prenuptial agreement in place.
Know where to seek support if property division complications arise
Remember to organize all documents ahead of time, to seek clarification of state laws, especially those regarding business assets in a divorce, and to have a support network in place, in case an issue arises that you don’t feel equipped to handle on your own.