Now that you’re planning to get divorced, one of your big questions is if you will have to divide your business. You started your business before you met your spouse. You got married, and they never participated in it.
Of course, your business supported you both and has given you the lifestyle that you wanted. At the same time, this is a business you created and that your spouse played no role in. Do they deserve any part of it during your divorce?
Does your spouse get half of your business during your divorce?
It’s a little difficult to answer that question without looking at the specific factors that make up your case. However, one thing that you can be sure of is that Texas is a community property state and will consider most property that was acquired during your marriage to be shared among spouses. That could mean that any earnings from your business or assets your business assumed during your marriage may also belong to your spouse.
That doesn’t necessarily mean that they’ll walk away from your marriage with your business. In many cases, if your started a business before your marriage, then it’s largely considered to be separate property. If your spouse put any work or effort into the company, it may be considered part of your community property. Additionally, if your business grows in value during your marriage, then that growth may also be considered community property.
What should you do if you don’t want to share your business with your spouse?
To start with, it’s a good idea to talk to your attorney about your concerns. Your property may be separate, so if that can be shown, then you won’t have to worry. If there are some assets that fall under the community property rule, then you may be able to negotiate with your spouse to have them receive compensation or other assets instead of taking part of the business.
Every situation is a little bit different. Your attorney will be able to review your business documents, look at the length of your marriage and give you more information on the potential categorization of your business.