Must business owners split their companies 50/50 during divorce?

Many people in Texas operate professional practices or small businesses. Sometimes, professionals work alone. Other times, they employ other professionals in the same sector or even family members as part of their support staff. Those businesses and professional practices can become a family’s primary source of income and an individual’s primary source of personal wealth. They can also be at risk during divorce proceedings.

If a business owner started, acquired or invested in the business during the marriage, it may be at least partially community property, unless they have a strong marital agreement stating otherwise. Are they at risk of a 50/50 split of ownership if they divorce?

An even split of all assets isn’t mandatory

The Texas community property statute imposes a presumption that an even split of the marital estate is a fair property division arrangement. However, spouses can present evidence to the courts challenging that presumption and showing that a more imbalanced distribution of property is the best and fairest solution.

Spouses can also either negotiate arrangements with one another or present evidence to a judge to pursue an order that allows for sole ownership of the business after the divorce. Typically, the business owner may need to make concessions, such as offsetting the value of the company with investments, home equity or even marital debts.

Those facing a complex property division process typically need legal guidance and assistance when strategizing for the best possible outcome. Working with a Texas divorce lawyer as soon as possible during divorce can be beneficial for those with valuable marital property, such as businesses and professional practices accordingly.