Rosales Law Firm

Get Legal Advice Today : 915-219-5516

  • Home
  • Practice Areas
    • Criminal Law
    • Family Law
    • Employment Law
  • About
  • Videos
  • Articles
  • Blog
  • Contact
Rosales Law Firm

Phone: 915-219-5516

  • Home
  • Practice Areas
    • Criminal Law
    • Family Law
    • Employment Law
  • About
  • Videos
  • Articles
  • Blog
  • Contact

Using a prenup to protect a business in a divorce

| Feb 25, 2019 | Divorce

A prenuptial agreement, or postnuptial for couples who are already married, can be a way for business owners in Texas to protect their enterprises if they get divorced. Some people may worry that these documents are ways to cheat a spouse out of a rightful share of marital property, but this is not necessarily the case. Instead, this agreement allows a couple to make decisions about how to divide property in an atmosphere that is less contentious than a divorce would be. A pre- or postnup can make the divorce process less difficult.

Such an agreement can eliminate the expensive and intrusive process of business valuation entirely by stating that the company is separate property. However, in some cases, the owner may want to grant the spouse a percentage of the company’s value. Spouses who are co-owners might decide they want to keep the company even if they divorce.

Business organizing documents are another way of specifying that there is a sole owner and should a divorce occur, the company cannot be transferred. Since a spouse may still be owed a payout, it may be necessary to review the company’s financial records. Carefully tracking all expenses, keeping business and personal finances separate, documenting how the company is funded and recording cash transactions can all help ensure that a clear financial picture can make this payout fair.

If there is no agreement in place, then based on community property laws in Texas, a business is supposed to be divided equally between the two spouses. In practice, this can be handled in other ways. For example, the spouse who is not the business owner might take another asset that has equal value. However, it is important to make sure that when assessing the value of the asset, taxes and other expenses associated with it are taken into account.

  • Facebook
  • Twitter
  • LinkedIn

Recent Posts

  • Getting your license back after DUI
  • How a DUI might negatively impact your life
  • How to let your children know about your divorce
  • Does Texas treat DWIs more harshly than other states?
  • Drunk driving during the holiday season

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015

Categories

  • blog
  • child support
  • criminal defense
  • Criminal Justice Reform
  • Discrimination
  • Divorce
  • Domestic Violence
  • Drug Charges
  • Drug Crimes
  • Drunk Driving
  • drunk driving defense
  • DWI
  • Employment Lawyer
  • Expunction
  • Firm News
  • Juvenile Crimes
  • Misdemeanor Charges
  • Probation Violation
  • Property Crimes
  • Robbery
  • Workplace Discrimination
  • Wrongful Termination

RSS Feed

Subscribe To This Blog's Feed

FindLaw Network

Tell Us Your Legal Issue

Office Location

1400 Montana Avenue
El Paso, TX 79902

Toll Free: 888-352-0467
Phone: 915-219-5516
Fax: 915-542-0878

Map & Directions
  • Follow
  • Follow
  • Follow
1400 Montana Avenue El Paso, TX 79902
Review Us

© 2021 Rosales Law Firm. All Rights Reserved.

Disclaimer | Site Map | Privacy Policy | Business Development Solutions by FindLaw, part of Thomson Reuters