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Choosing to dissolve the business during a divorce

On Behalf of | Jun 10, 2019 | Divorce |

Running a business as a married couple is no walk in the park. Owning and running a Texas business can be extremely stressful, even if the business is successful. However, trying to run a successful business while the marriage is falling apart can be even more frustrating, especially if the former couple can no longer work together amicably. At this point, former couples may have to decide if they can continue to run the business together or if one person needs to leave.

In some cases, former couples ultimately decide to dissolve the business. There are still some factors to consider before the dissolution is completed. This is a dividable asset, so the timeline for selling can be important. If the former couple can hold on to the business for a bit longer, they could potentially maximize their profits. If cash flow is a major concern and the business could go under, the former partners may have to sell the business before they are ready.

Both individuals should also discuss the minimum offer that they would accept. This prevents one person from entertaining an offer that the other person would not be interested in entertaining.

Divorce is an emotional process, especially when it becomes apparent that the former couple may have to dissolve the family business in addition to dividing up other marital assets, such as the family home, the cars and even artwork that was purchased during the marriage. A family law attorney may assist with coming up with a plan for dividing up the marital assets to help ensure that a person receives the assets that he or she is entitled to. If the person came into the marriage with assets, the attorney may even assist with protecting those assets by providing proof that the person brought those assets into the marriage.