Jamie Graham & Associates, PLLC
Schedule A Free Consultation 210-764-3468

Protecting family business from divorce is possible

An important part of business ownership in Texas is tracking variables related to risk, such as supply costs or new competitors. However, one of the greatest threats to the success of a business is divorce. This is why prenuptial agreements may be especially helpful prior to getting married and running a business during the marriage.

A prenuptial agreement is a legal document created and signed prior to marriage that specifies what will happen to a business that was started before the marriage if divorce occurs. If a prenuptial agreement is done correctly, it can be considered ironclad. This means it will negate even the laws related to property division in Texas, which is a community property state. In a community property state, the court splits community property -- or marital property -- 50/50 during the dissolution of a marriage.

A prenuptial agreement requires that both spouses offer full disclosure, and it cannot be unconscionable. It must also be written as well as signed voluntarily in front of witnesses. Using a prenuptial agreement to protect a business is critical since a family business is oftentimes two divorcing spouses' greatest assets.

If no prenuptial agreement exists and divorce papers have already been filed in Texas, it is still possible to try to protect one's best interests during this type of family law proceeding. Divorce negotiation or mediation are alternatives to divorce litigation that may lead to a settlement that both parties find satisfactory. These alternative processes offer the benefit of being less stressful and costly than going to trial to resolve divorce-related issues.

Source: marketwatch.com, "How to protect your family business during a divorce", Daniel Thompson, Feb. 10, 2017

No Comments

Leave a comment
Comment Information
email us for a response

Get In Touch With Us

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Jamie Graham & Associates, PLLC
310 South St. Mary's Street Suite 2500
San Antonio, TX 78205

Phone: 210-764-3468
Fax: 210-308-5669
San Antonio Law Office Map