Divorce Lawyers

Divorce is difficult enough regarding personal issues, but the stress is multiplied when a small business is involved. A prenuptial agreement — which we’ll discuss is more detail later — is the most traditional way of providing protection to your small business, but is clearly difficult to obtain. Furthermore, the prenuptial agreement reinforces the fact that defending a small business must start early. Starting this process soon after becoming married will establish your defense at a time when divorce is the least likely outcome of your relationship. This is important because funds and assets dating back several years form the divorce claim can be sought by your spouse. In the event of a payout, you may sell the business and split the earnings, employ simple assets and cash, or implement a property settlement note, although you will have to pay interest in this case. None of this should be performed without the help of a Houston divorce lawyer.

However, as if often the case, during the time a marriage is successful the preparations for divorce are simply not made. In this case an agreement must be reached between the two spouses. The one whom is not owner of the business may be entitled to a large portion of it, depending on his or her activity with said business. Again, the extent of a spouse’s activity may very well not be obvious to you until you begin investigating with legal representation, so it’s important to be thorough. Wherever you are on the road to divorce, you should consider the ramifications of reinvesting most income back into your business. Clearly this is a prime consideration in relationships involving a spouse with a relatively new business, or perhaps one rebounding from a slump of some nature. Your spouse could stake a larger claim to your business with the justification that his or her quality of life was affected by not personally employing more of your income stream derived from your small business.

It’s essential to organize all your property by its category: marital or separate, or non-marital. In many cases, property that was once separate becomes marital property, for a number of reasons. For example, separate funds deposited into a joint account and property value increases which occur during your marriage, even if the property was purchased before saying your vows. Furthermore, although most states don’t allow it, some permit separate property to be kept separate throughout the duration of the marriage. As a general rule, however, separate property is more narrowly and clearly defined, when compared to marital property. An inheritance, gift or pain and suffering payout received before marriage are all considered separate property. Marital property becomes more complex, however, due to co-mingling, or mixing of said property.

In addition to a prenuptial agreement, postnuptial agreements are allowed under Texas law and administered by Houston divorce lawyers. The two are essentially identical, except the time during the marriage that they each become active. Both require the core principles of full disclosure, absence of duress, and equality of fairness amongst the two parties. Postnuptials do tend, however, to be voided more than prenuptial, and there is no standard response in court when one party fails to perform fiduciary responsibilities.