A lot of divorces in San Antonio, Texas, include small businesses. Whether you or your spouse run a business, this business is considered community property. Thus, this property will be divided equitably between the two of you. This makes your divorce more complicated. If your divorce involves a business, speak with a great attorney in San Antonio, TX, to understand your options. Often, business divisions can involve financial and emotional matters. Thus, they must be approached in a way that accounts for those. Also, you must get things right, as property divisions can be modified. Dividing a business during a divorce includes the following:
Valuation
Lawyers of both spouses should determine the value of the business to be divided in a divorce. Business valuation can be done using different recognized models based on a business’s assets, income, or market approach. The suitable model depends on the kind of business in question. Lawyers often work with real estate experts in these situations. Such experts account for subjective factors like seller motivations, buyer demand, and available inventory.
Ownership
Property that a couple acquired before marriage, by gift, or through inheritance is separate property, not subject to division.
Division
When courts decide on property division, they consider what is just and proper. They think about the following factors:
- Future earnings prospects. When courts decide on property division, they consider the ability of each spouse to earn money based on their age, health, and education.
- Child custody. If a spouse sacrificed their career to care for their minor children, they may be eligible for a disproportionate share. This is particularly true if this spouse remains in this capacity following the divorce.
- Fault. In Texas, family courts consider who caused the marriage breakdown when dividing property, including a family business.
In addition, a family judge may consider other relevant factors, like the separate property award. Often, the challenging spouse needs to prove that such an award is vital to ensure fair and just marital property division.
Is Businesses Community Property in Texas?
A business that is started while a couple is married is community property. Even if this business was started before marriage, if it has become a family business the other spouse helped run or fund, it is community property. Also, even if the company is kept separate throughout the marriage, it may become community property if its value increases.
