location6160 Warren Pwky, Suite 100, Frisco, TX 75034
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Frisco Business Owner Divorce Attorney

Dallas TX business owner divorce lawyer

Divorce Lawyer Helps With Protection, Valuation, and Division of Business Assets in Collin County

For business owners who are going through a divorce, a common fear is that they will lose their business in the process, or that they will be ordered to pay unmanageable amounts of spousal support in order to keep the business. Certainly, it is important for business owners to take the divorce process seriously and think carefully about how best to protect their assets and interests. However, with a smart approach, it is possible to survive a divorce without compromising your business.

At the Law Office of Philip W. Moore, Jr., we have 20 years of legal experience, include extensive practice in both business law and family law. As such, we are deeply familiar with the challenges that business owners face throughout the divorce process. We can help you develop an effective strategy in preparation for your divorce, as well as represent you in litigation or settlement negotiations with your spouse.

Protecting Your Business Assets

As a business owner, you may be better able to protect your business assets throughout your marriage if you understand the differences between separate property and community property under Texas law. A business that you owned before your marriage will generally be considered your personal, separate property, and a divorce will not affect your ownership of the business. However, this can change if you contributed substantial marital assets to the business during your marriage, to the extent that your marital property and business assets became commingled. Keeping your business clearly separate from your marital estate can help you avoid dealing with these complications.

Another way to protect your business assets is to establish a prenuptial or postnuptial agreement with your spouse. A prenup is especially useful when you are entering your marriage with business assets of your own, while a postnup can be beneficial if you establish or acquire a business while you are married. These agreements allow you to clearly differentiate between separate and community property, as well as work out a property division agreement in advance that allows you to keep a business in the event of a divorce.

Business Valuations in a Texas Divorce

Businesses that are founded or acquired during a marriage are typically considered to be community property, and this means that they are an important consideration in the division of assets. As you prepare to divide your property with your spouse, it is important to obtain an accurate valuation of any businesses that either of you owns. We can help you work with qualified financial professionals to obtain an appropriate business valuation according to the nature of your business. For example, if you own a business that is publicly traded or that has market value, the valuation may be based on the price the business could fetch from a buyer. If, on the other hand, you own a small family business, the valuation may be based on the assets the business holds or the income it generates.

Options for Dividing Business Assets

With a better understanding of your business's value, you can consider your options for dividing it along with the rest of your community property. In a litigated divorce, when the decision is left to the court, you could be ordered to sell a business and fairly divide the proceeds. However, if you can negotiate an agreement with your spouse, you may be able to achieve a more desirable outcome. One option is to buy out your spouse's interest in the business with other valuable marital assets, like your home or a portion of your retirement savings. Alternatively, you could agree to ongoing spousal support payments to offset an imbalance in the marital property distribution.

Contact a McKinney, TX Divorce Lawyer for Business Owners

Our experienced divorce attorney can help you understand all of the options available to you as a business owner and make a plan to proceed in a way that best protects your interests. If you are looking for answers and personalized legal advice, contact us today at 972-954-6455 to schedule a free initial consultation. We represent business owners in McKinney, Plano, Frisco, Denton, Prosper, Little Elm, The Colony, Dallas, and throughout Collin County, Dallas County, Denton County, Tarrant County, Hunt County, Rockwall County, Sherman County, and the surrounding areas.

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