What Happens If Both Spouses Co-Own Multiple Businesses During a High-Asset Divorce?

When you decide to get divorced, there are many different things you must consider. If you and your spouse are in business together, separating those financial ties is one of the most important considerations you have to make. There are multiple routes you can take to ensure you aren’t taken advantage of in your divorce. You may be asking yourself what happens if both spouses co-own multiple businesses during a high-asset divorce.

In Texas, during a high-asset divorce that involves multiple businesses co-run by both spouses, the court will seek to make as fair a settlement as possible. Your business interests will likely be included as marital property. There are multiple options the court may pursue to arrive at a mutually-beneficial conclusion, such as:

• One spouse buys out the other’s share in the business.
• Sell the businesses and split the proceeds equally.
• Maintain co-ownership with a newly drafted agreement to reflect the new situation.

What Elements Will Be Considered in My Divorce?

While there may be much more at stake in your divorce due to high-value assets, the procedure will still be fairly similar to a standard Texas divorce. To decide on how to divide marital assets, the court may decide to split things evenly or determine a more equitable division of marital property. Some of the elements that the court will consider before arriving at this conclusion include:

• Non-Marital Assets: Not everything you own is going to be considered a marital asset. That includes your business. If your business was owned by you before marriage and your partner came on later as a co-owner, it may be possible that only the parts of the business they were involved with will be subject to division.
• Contributions: Each partner’s overall contributions to the growth of the business will also be considered. This includes effort and value.
• Financial Needs and Personal Desires: The court will also consider each spouse’s financial needs after the divorce, as well as each partner’s desire to continue running the business.

Is My Spouse Entitled to Half the Business?

It depends on many different factors, all of which must be demonstrated in court. If your business is determined to be marital property, it will likely be divided between you and your spouse. However, if the business was acquired by you before the marriage and with your own funds, it may be seen as separate property. If your spouse contributed to building the business or helped it grow significantly during the marriage, it will likely be seen as community property.

Contact a Houston Divorce Lawyer Today

Dealing with a high-asset divorce can be a complicated and overwhelming situation on its own. When you involve multiple businesses co-owned by both spouses, it may be too much for you to handle. At C. E. Schmidt & Associates PLLC, our combined 100 years of legal experience can help you achieve a favorable settlement in your divorce. Reach out at 346-517-6906 or contact us online to speak to a valued team member about your case.