How Can I Protect My Business During My Divorce?

 Posted on July 13, 2023 in Divorce

The divorce process can involve a number of difficulties, and the decisions made about property division and other issues can affect you financially for years to come. When you own a business, the stakes can become even higher. Protecting your business interests during a divorce requires careful planning and the guidance of a knowledgeable attorney. If you are a business owner going through a divorce in Galveston, Texas, the experienced attorney at Daniel R. Bacalis, P.C. is here to help.

The Importance of a Proper Business Valuation

One of the key steps in protecting your business during a divorce is ensuring that it is properly valued. A business valuation is crucial for determining how assets and debts can be divided fairly between you and your spouse. Consulting with a forensic accountant or business valuation expert can help provide an accurate assessment of your business's worth. This will not only give you an understanding of the current monetary value of the business, but it can also inform you about the benefits you can expect to receive as your business grows in the future.

Safeguarding Your Business Assets

To protect your business, it is important to take proactive measures. Some strategies may include:

• Keeping accurate and up-to-date financial records

• Separating personal and business finances

• Obtaining a prenuptial or postnuptial agreement that addresses business ownership and division

• Considering a buyout or settlement agreement with your spouse

• Implementing a trust or partnership agreement to clarify business ownership and control

Minimizing Disruption to Your Business

Your divorce can create uncertainty and disruption in your personal life. However, it is important to do everything possible to minimize the impact of your divorce on your business. Informing key employees and stakeholders about the divorce can help maintain stability and prevent any negative consequences for your business. You can also take steps to keep your personal affairs separate from your business activities. This can sometimes be difficult if you operate a family business and work with your spouse or other family members. By making an effort to maintain professionalism and focus on managing the business successfully during your divorce, you can avoid issues that could affect your business operations in the future.

As you divide assets with your spouse, you may need to take steps to ensure that you will be able to maintain ownership of your business. If your business is a marital asset that was founded or acquired during your marriage, it will need to be considered during the property division process. If you wish to remain the sole owner, you may need to reach agreements with your spouse and ensure that they will receive assets that have a similar monetary value as the business. If a full buyout of your spouse’s share of the business will not be possible, you may agree to set up a payment plan in which you can pay the amount owed to your spouse over time.

If both you and your spouse are closely involved in a family business, neither of you may be willing to walk away from it. Depending on your ability to cooperate with each other and put aside your personal differences, you may agree to continue as co-owners of the business after getting divorced. When doing so, it will be important to establish a partnership agreement that will define the percentage of the business that each spouse will own, the ongoing responsibilities for both parties, and how you will share decision-making authority. This can ensure that you can manage the business together successfully in the coming years.

Contact Our Galveston County Business Asset Division Lawyer

Divorce cases involving businesses can be complex, and it is crucial to seek the guidance of a skilled attorney who can provide guidance on how to resolve the various issues related to business valuation and property division. At Daniel R. Bacalis, P.C., we can help you navigate the legal process, protect your business interests, and advocate for a fair division of assets.

If you are a business owner facing divorce, our Galveston property division attorney is here to assist you. Contact us at 409-392-1511 to schedule a free consultation. We understand the unique challenges and intricacies of business-related divorces, and we will work tirelessly to protect your business and your future.