The Harris Law Firm The Harris Law Firm
Free 30-Minute Consultations

How divorce impacts business assets

When business owners in Texas get divorced, they may be putting the future of their companies at risk. This is because a spouse may obtain a portion of the company or its assets as part of a final divorce settlement. If a company has multiple owners, everyone's future could be influenced by the outcome of a divorce even if they aren't directly involved in it. One way to avoid a potential disaster is to have a buy-sell agreement.

A buy-sell agreement allows an owner to be bought out for a specified price in the event of a divorce. The agreement may also dictate whether a former spouse is allowed to own a share of the company or have other rights. Having a plan in place ahead of time may allow business owners to concentrate on running their companies during the divorce process.

Knowing that a plan is in place may also help to calm investors and employees, which can provide stability to the brand. Finally, it may prevent a business owner from having to go into debt to pay off a spouse when the divorce is finalized. In addition to keeping the company on strong financial footing, it can help a debtor avoid the anxiety and stress that may come with owing a lender money.

It may be possible to come to a divorce settlement through mediation or litigation. How a divorce is resolved may depend on the relationship between the individuals ending their marriage and types of assets that need to be divided. An attorney may be able to help a business owner craft a divorce settlement that allows the individual to retain control of his or her company. A prenuptial agreement may also help entrepreneurs protect their organizations in a divorce.

No Comments

Leave a comment
Comment Information

What Can We Do To Help?

Do not be overwhelmed by the stress of your case. Every problem has a solution, and we are going to work very hard to find the one that works best for you.

Bold labels are required.

Contact Information

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.


Privacy Policy

Email Us For A Response

Office Location

The Harris Law Firm
3601 Hulen Street
Suite 101
Fort Worth, TX 76107

Phone: 682-990-5757
Fax: 817-294-1376
Fort Worth Law Office Map