A family business is often a divorcing couple’s biggest asset. If the two sides cannot find common ground regarding valuing and dividing the business, divorce proceedings could become lengthy and costly. But there are options for business owners that may help reduce stress and avoid serious disagreements during divorce proceedings in Texas.
Tips for reducing conflict during divorce involving business
Business owners going through a divorce should ideally avoid using their businesses to cover large personal expenses. Entertainment and meals may sometimes be deducted from a business’s revenue, or the business may reimburse these costs. During the divorce process, questions might crop up about whether such expenses were legitimate or for one of the parties’ personal benefit. Being careful to avoid commingling of personal and business expenses may help avoid these types of contentious debates.
Timely and accurate bookkeeping can also be a business owner’s friend. This is important because financial documents come under increased scrutiny during a divorce. It’s also important for business owners to categorize expenses correctly and ensure that all payments are recorded — especially cash transactions.
How an attorney can help
Figuring out how to divide business assets during a Texas divorce can seem overwhelming. However, a family law attorney can help a divorcing business owner pursue a fair settlement with the other party at the negotiation table. If no agreement can be reached outside of court, the attorney will be prepared to litigate any unresolved issues. Either way, the attorney will push for the most personally favorable outcome for the client.