You’ve invested countless hours into growing your business. The long days, the weekends sacrificed, the personal risks—you’ve put everything on the line to see it succeed. Now, with divorce on the horizon, the idea of seeing that success and all your precious business assets are divided up in a courtroom is hard to bear.
It’s not just the financial value at stake. It’s the client relationships you’ve cultivated, the trade secrets you’ve developed, and the reputation you’ve built. The idea of handing over a portion of your business—or sensitive information about how it runs—to your ex-spouse is enough to keep you awake at night.
Is there anything you can do to protect your business assets before the divorce?
Keep Business Assets That Belong to the Business Separate
One of the first steps is to ensure that your business finances are separate from your personal finances. Mixing accounts makes it much harder to argue that your company should be treated as separate property. Maintain a clear paper trail that distinguishes between business funds and personal funds. Good bookkeeping may not feel glamorous, but it can be a powerful safeguard when property division begins.
Keep Business and Household Roles Separate
Courts often consider whether a spouse contributed to the business’s success. If your spouse worked in the company without pay, invested family money into it, or helped with operations, they may have a stronger claim to a share of it. Setting clear boundaries between your professional and household roles can help reduce the likelihood of those claims later on.
Consider a Pre- or Postnuptial Agreement
Many business owners assume prenuptial agreements are only for people with significant personal wealth, but they can be equally crucial for entrepreneurs who want to protect their business assets. If you already own your business before marriage, a prenuptial agreement can outline how it will be treated in the event of divorce and what should or shouldn’t happen to business assets. Even if you didn’t enter into a prenuptial agreement before saying “I do,” a postnuptial agreement can still be drafted after marriage. Both can be tailored to protect business assets, including intellectual property and client lists.
Pay Yourself a Fair Salary
By paying yourself a reasonable salary, you’re both compensating your family fairly and mitigating the argument that your spouse deserves a greater share of the business value. It’s tempting to reinvest most of your business earnings back into growth, but if you blend business earnings and household income like this during your marriage, it could complicate things later. Courts might decide that your spouse is entitled to a larger portion of the company’s assets, as the household income was likely kept artificially low.
The Best Step: Hire an Experienced Family Lawyer
While there are many practical steps you can take, none of them matter much if you don’t have a knowledgeable advocate in your corner. Every divorce is different, and Texas property laws can be complicated when business ownership is involved. The best protection for your livelihood is having a competent family law attorney who understands how to safeguard business assets and guide you through the process.
Please Call Christman | Daniell Attorneys for Your Legal Needs Today!
Are you looking for family law services in Texas? Christman | Daniell Attorneys is your premier choice. With years of experience and a deep understanding of the legal landscape, our skilled team is dedicated to helping families navigate complex legal matters. Whether it’s divorce, child custody, or adoption, trust Christman | Daniell to provide compassionate and effective representation for all your family law needs throughout Collin County.
Please consult an attorney for guidance on your specific situation. The material on this website and in this or any blog article we publish is for informational purposes only and does not constitute legal advice. The attorneys at Christman | Daniell Attorneys believe in tailoring legal advice and solutions to your circumstances.
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