Dividing a once-shared life is tough. Furniture, homes, vehicles and a multitude of other tangible goods have to split equally between the separating parties. But what happens when the two continue to share one significant asset – the family business? Texas couples should set themselves up for success as much as possible when first establishing a company.
FindLaw suggests either a prenuptial or postnuptial agreement because it allows spouses to predetermine what they consider shared property. Another option is separating personal assets from those of the business by forming a corporation or Limited Liability Company. With this setup, the spouses could maintain their personal property separate from the LLC’s, in effect, deciding in advance what they would share and what they would keep separate.
A final suggestion FindLaw offers is simply keeping a strong relationship with the former spouse, throughout the marriage and beyond. Some partners manage to work together well but cannot seem to live together. If they own a business together, the company could still fare well even if they give up on their personal relationship.
An article in Forbes agrees with the above suggestion, explaining that staying together in the business could be one of the most logical solutions if the two spouses can maintain an amicable working relationship. That’s a big “if,” but it is one worth considering. For those who can work together and continue to do so, the company can carry on with few adjustments needed. No one will have to come in and valuate the business, and no one has to think about losing something he or she has poured heart and soul into.