If one or both spouses in a Texas divorce own an interest in a business, the ownership of that business interest must be addressed in their property settlement. There are many ways that business interests can be addressed in property settlements. In fact, you might say that there are as many ways to handle business interests in a divorce as there are types of business interests that spouses own. Whether one or both of you own and operate your own businesses, participate in and own part of a family business, or own some other type of interest in a business, the disposition of your business interests takes place in the larger context of your property settlement. This means that the overall scheme for dividing all of your marital property, including any business interests that are deemed marital property, must have a just and right result.

Business interests can be a tricky item to deal with during a divorce property settlement. They are not simply items of value, they carry with them tax consequences, including tax consequences which may be triggered upon the transfer of the business interest, they generate income, and they can involve debts. Sometimes, it is fairly easy to decide what to do with a business interest. For example, if one spouse owns and operates their own business with no help, either physically or financially, and the non-involved spouse wants nothing to do with it, the spouse who owns it will keep it. Usually when this happens, the spouse who does not get the business interest receives money or property with a value similar to the value of the business interest, so as to keep things fair.

Sometimes, though, spouses own and operate businesses together. When this happens, the spouses may have to make some difficult decisions about whether the business will continue, who will continue it, and other similar matters. Sometimes, things are able to keep going just like they were before the divorce because some divorcing couples who own businesses together have excellent professional relationships and the ability to separate their business relationship from their personal relationship. If this scenario applies to a divorcing couple, their attorneys can help them to design a settlement that provides for continued joint operation and ownership.

Other couples who own businesses will not be able to continue on in business together after their divorce. When this happens, it is common for the spouse who wants to keep the business and operate it as their own to buy out the other spouse’s ownership interest in the business. Buyouts often consist of the other spouse getting money or assets that are worth about as much as the business is worth. Business valuation experts are often consulted to help the parties determine what the business is currently worth, so that they can make decisions about how to proceed with it. In some divorce cases, neither spouse wants to continue owning or operating the business. They may wind up the business and dispose of business assets and pay business debts in their property settlement agreement.

If you or your spouse has an ownership in one or more businesses, a Texas divorce attorney can help you explore your options for dealing with business ownership in the property settlement. Texas Family Law Attorney Alex Tyra can help you understand many things about property settlements, whether or not they involve a business interest. To learn more about property settlements in your Texas divorce, please call us today, at (903) 753-7499.