Back to Learning Center

Video

Specialty tag(s): Complex Property, Characterization of Separate and Community Property, Property Division, Divorce for Business Owners, Divorce

What Happens to the Assets of a Business in a Divorce?

Angel J. Berbarie | April 2, 2024

When a business owner gets divorced, their interest in the business may be divided with their spouse. However, what would be divided is the business itself, not its assets. But the specifics of what happens to a business or its assets in a divorce can vary based on the unique circumstances of a specific case, which is why it’s important to seek guidance from a knowledgeable divorce attorney.

Will the Business Always Be Divided Up?

In most cases, if you own a business, it will be divided in a divorce, but that’s not always true. First, you’ll need to determine whether the business should be characterized as separate or community property. If it’s separate property, you’ll keep the business. If it’s community property, its value will need to be split with your spouse.

Can the Court Divide the Assets of the Business?

Usually, the assets of a business are not divided in a divorce, but there is one key exception. If the spouse who doesn’t own the business can prove that the business is essentially their spouse’s alter ego, with the finances of the business being indistinct from their personal finances, then the court can divide up the assets of the business.

If you own a business and are facing divorce, it’s crucial to start pulling together financial documentation as soon as possible, as you’ll need it for the business valuation. You’ll also need to hire an experienced lawyer who can protect your legal rights and help you secure the best possible outcome for your case. The divorce attorneys at Goranson Bain Ausley stand ready to assist business owners in Texas, and we’ll work hard to help you achieve the results you deserve. Contact us today to get started.

Services to Help Solve Your Challenges

Our attorneys are experienced in all aspects of family law and will guide you through each step of the process, ensuring you have the information you need to make wise decisions and prepare for the future.

Get in Touch

At Goranson Bain Ausley, we strive to deliver clarity about what comes next and confidence that you and your family’s future are more secure. Contact our team and discover how we can help you.

“I look at both the legal and human aspects of every case and work to protect the well-being of my clients and their families.”

Request A Consultation

Blog

A man meeting his attorney in an office building

Tom Trahan

Why Won’t My Attorney Criticize My Ex?

Learn why maintaining a constructive and respectful approach during a family law matter can be beneficial.

Blog

military couple sitting on couch looking away from each other

Kyle Basinger

Seeking Assistance and Advice in Military Divorce: Resources, Tips, and Guidance for a Smooth Process

In this blog, we explore tips for facing a military divorce and advice about the rights and benefits that can affect your case.

Latest Resources