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Protecting Your Business During Divorce


A business doesn't stop needing your attention simply because your marriage is ending. Many clients feel overwhelmed thinking about how their business, something they may have built from the ground up, can become an asset at risk during their divorce. Here's what you need to focus on:

  • Valuation: If divorce is on the horizon, get an accurate, up-to-date valuation of your business. Don't rely on guesswork; this needs to be done by a qualified professional.

  • Separate or Community Property? How your business is classified under Texas law matters hugely. If started before the marriage, it might be largely separate property. If the business grew significantly in value during the marriage, there may be a community property element. Your attorney needs this analysis early on.

  • Prenups or Buy-Sell Agreements: If you have them, these documents can provide significant protection for your business interests. If not, it doesn't mean all is lost, but your options may become more limited.

  • Don't Make Rash Decisions: Don't suddenly liquidate assets or try to hide your business value. These actions can backfire in court. Focus on getting expert legal advice.

Divorce doesn't automatically mean you'll lose your business. Having a solid legal team will help you present the correct evidence to the court, negotiate on your behalf, and strategize towards the best possible outcome to protect both your business and your future.

This is not legal advice. Please consult with an attorney for actual advice.

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