Law Office of Jacqueline McNuttLaw Office of Jacqueline McNutt

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Protect your business during divorce

A business is not built overnight. Owners in Texas put in a tremendous amount of time and effort to nourish their business operations, and the idea that a divorce could potentially halt or even undo that progress is understandably upsetting. Protecting a person's business interests is important, so here are a couple of options for doing just that.

Prenuptial agreements are much more common than they used to be, but not everybody is entirely on board just yet. Even if a business owner is in favor of using a prenup to protect his or her business, the spouse might not be. In this case, a person should strive to keep business and personal expenses completely separate. Maintaining organizing documents that clearly state the business cannot be transferred after a divorce is also helpful.

However, it is generally easier to go the contract route. A prenup -- or a postnuptial that is signed after getting married -- can clearly outline that the business is separate property that will not be divided should the owner divorce. A prenup can also specify what percentage a spouse should receive of any increase in the value of the business during the marriage.

No one wants to give up everything they hold dear to themselves during a divorce, and it absolutely does not have to end that way. The easiest way Texas business owners can prevent this is through the use of clearly worded pre or postnuptial agreements. In the absence of these contracts, maintaining completely separate accounts and avoiding commingling assets can also be effective.

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