Texas law considers your assets and debts as marital property. However, there are a few ways to protect your assets, such as creating a prenuptial agreement and limiting your spouse’s involvement in your business. If you don’t have a prenuptial agreement, try negotiating a postnuptial agreement to agree with your spouse that you are keeping your business.
Limit your spouse’s involvement in the business
When your spouse works either part time or full time for your business, a judge may say that they have partial ownership. It’s safest to not allow your spouse to help with the business if you intend to keep the asset as yours in a divorce.
Have a buy-sell agreement with your shareholders or business partner
When you don’t have a buy-sell agreement with business partners or shareholders, the court may want you to give part of your shares to your former spouse. A buy-sell agreement states that each partner in the business must offer their shares to the other partners before giving them to an outsider.
Pay yourself a salary that you use for your household
Some married business owners make the mistake of investing all of their money back into the business. This gives the court a reason to rule that your spouse didn’t get a fair share of the profit you earned from your business. You should pay yourself a reasonable salary and spend that money on your household expenses to show you are paying your fair share in your marriage.
You must read about laws surrounding marriage in your state to know what to expect and how to protect yourself. A business is part of marital property, but you could take the steps above to separate it and protect it in case you divorce.