The last thing you want is for your divorce proceedings to disrupt your business. This article aims to address a common question we often hear from clients struggling both with managing a divorce and with running a small businesses in Texas: "How can I safeguard my business from a disruptive divorce process?"
1. Protect Business Records
Keep detailed records for your business, clearly separating personal expenses from business ones. This will make it easier to provide an accurate picture of your business finances during divorce proceedings.
2. Involve Legal Counsel Early On
Talk to a divorce lawyer with experience in handling cases involving business owners as soon as possible. They can offer strategic advice tailored to your unique circumstances, helping to ensure that your business suffers minimal disruptions.
3. Keep Business and Personal Assets Separate
Make sure to keep your business assets separate from your personal assets. Mixing the two can complicate property division and might put your business at greater risk.
4. Spousal Employment Agreements
If your spouse works in the business, consider a spousal employment agreement that outlines compensation and what happens if employment ends. This can protect both your business and personal financial interests.
5. Opt for Mediation or Collaborative Divorce
These are less adversarial options that can be quicker and less disruptive to your business. In these approaches, both parties work together to find mutually beneficial solutions, avoiding the complexities of a court battle.
6. Prepare for the Worst
Lastly, always prepare for the worst-case scenario. Make contingency plans and backup arrangements to keep your business running smoothly, irrespective of the divorce proceedings.
Remember, safeguarding your business during a divorce in Texas requires careful planning and expert legal advice. If you find yourself facing this challenging situation, don't hesitate to seek out the assistance of a qualified divorce attorney who understands the intricacies of Texas law as it pertains to both divorce and business ownership.
Attorney Sean Y. Palmer has over 20 years of legal experience as a Texas Attorney and over 25 years as a Qualified Mediator in civil, family and CPS cases. Palmer practices exclusively in the area Family Law and handles Divorce, Child Custody, Child Support, Adoptions, and other Family Law Litigation cases. He represents clients throughout the greater Houston Galveston area, including: Clear Lake, NASA, Webster, Friendswood, Seabrook, League City, Galveston, Texas City, Dickinson, La Porte, La Marque, Clear Lake Shores, Bacliff, Kemah, Pasadena, Baytown, Deer Park, Harris County, and Galveston County, Texas.
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