PLEASE NOTE: We are still open and operational! To protect your safety in response to the threats of COVID-19, we are offering our clients the ability to meet with us in person, via telephone or through video conferencing. Please call our office to discuss your options. click here for Covid 19 updates
Laura Dale & Associates, P.C.
713-574-7952
Areas Of Practice

What you should know about your business debt and your divorce

Could your business debt become a big problem in your divorce?

Most of the time, people think that the biggest bone of contention in a high-asset divorce is likely to be the family assets. However, business debt belonging to one party can also cause major headaches.

You may find yourself scrambling to convince a judge that a loan you took against business property to pay for family expenses should be repaid out of the marital assets. You may find that the judge won't allow you to base your support payments off the reduced income you've been taking -- even though the rest of the money was being put toward your business debts. Either way, you could walk away from your marriage saddled with a lot more business debt than you can manage.

How can you avoid this kind of problem? The experts say that there are a few basic rules you need to follow:

  1. Keep your business money separate from your family money. They're two different resources, meant for two different purposes.
  2. If you do borrow against the business or the business property for personal reasons, clearly document where all of the money went. Also, keep track of any repayments that were made to the business out of family funds.
  3. Never pay your family expenses out of the business funds during your divorce. That's a quick way to have the court impute more income to your name than you might otherwise believe is fair.

When you're a business owner, there's no such thing as a "simple" divorce. It may take the help of a forensic accountant and a financial advisor as well as your attorney to get you through.

No Comments

Leave a comment
Comment Information
  • TAOFLS
  • Board Certified
  • IAFL
  • Super Lawyers 2019
  • Best Lawyers
  • Avvo Rating
  • Avvo Rating
  • Avvo Client Choice 2014
  • Avvo Client Choice 2014
  • Best Law Firms Badge
  • Laura Dale
  • Texas Bar Today Top Ten Badge

Contact Our Experienced Team Today

Se Habla Español | Nous Parlons Français

Due to the experience our lawyers have in many specialized areas, you can rely on us to put together the right team to handle your case, even if it centers on complex issues such as international family law, business valuation or bankruptcy. Contact us today to make an appointment to discuss your needs with a knowledgeable lawyer.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Laura Dale & Associates, P.C.
email us for a response

OFFICE LOCATION
1800 Saint James Place
Suite 620
Houston, TX 77056

Phone: 713-574-7952
Fax: 713-600-1718
Houston Law Office Map

Review Us