Dividing a Valuable Asset
When a couple gets divorced, the division of assets becomes a key issue. This is especially true when it comes to businesses. The division of business assets during a divorce can be complicated in Texas. Many factors must be considered, such as the type of business, its value, and who owns it. In this blog post, we will discuss what happens to companies in a Texas divorce and provide tips on making the process smoother.
Community Property Laws
Texas is a community property state. This means that all assets and debts acquired during the marriage are considered jointly owned by both spouses, regardless of which spouse actually earned or incurred them. The guideline also includes businesses started or purchased during the marriage.
In a divorce, all community property must be divided in a just and right manner between the spouses unless they have negotiated an agreement. This can be a difficult task when it comes to dividing a business. The first step is to determine the fair market value of the company. Once that has been done, the couple can then decide how to divide it between them.
If one spouse wants to keep the business, they must buy out the other spouse's share. This can be done by paying them half of the business's fair market value or by giving them other assets of equal value. If the couple cannot agree on how to divide the business, the court will do it for them.
Working with a Texas Divorce Attorney
It is important to remember that businesses are not the only asset that must be divided in a divorce. The couple will also need to separate any other property they own, such as their home, cars, furniture, and savings. They will also need to determine who will pay any debts incurred during the marriage.
With all of these decisions to be made, it is important to seek the advice of an experienced divorce attorney. At Jeff Gilbert Law Office, we can help you understand your rights and options when dividing your assets and debts in a divorce. We understand how important it is to protect your important assets, and we are committed to finding a solution that meets your needs.
Learn more or schedule a consultation by calling (979) 200-6556 or by visiting our website.