When a couple decides to move forward with divorce, they will have to divide marital assets. For some Texas couples, this means figuring out what to do with a family-owned business. The property division process can be complex, especially when there is a successful business at stake. When a person knows what to expect, he or she can develop a strategy that will be best for his or her long-term interests.
Many couples find it beneficial to work on a settlement agreement out of court. When working on a settlement, it is prudent to think about the long-term implications of any agreement, as well as potential tax consequences. Separating business and personal assets, especially when the business is the primary source of income for both parties, is a uniquely complex process.
If the couple can no longer continue to operate the business together, it may be appropriate for one party to attempt to buyout the other other. A lump-sum payment is not always possible, however, it may be possible reach an agreement through negotiations on spousal support, promissory notes or other types of arrangements. The key to reaching a satisfactory agreement is to think about what will work well long-term, setting aside temporary emotions to consider what makes the most sense.
When a Texas business owner goes through a divorce, he or she will find it helpful to seek guidance from the initial stages of the process. Property division and other financial matters are difficult, but it is possible to secure terms that allow for a strong and stable future. A business owner considering options may want to start with a complete evaluation of his or her case.