Portrait of John K Grubb

Texas Divorce and Prenuptial Agreement

5005 Riverway Drive, Suite 450 • Houston, Texas 77056

Phone: 713-877-8800 • Fax: 713-877-1229

A Divorce Could Spell the End of Your Small Business

For too many business owners, a divorce spells the end of their marriage and their business. A divorce affects business owners in two ways. First, there is the impact that a divorce has on the time and attention of the business owner. In small businesses, owners are usually the heart and soul of the business. If they are frequently away meeting with lawyers, looking for paperwork or working on divorce settlements, their time running and growing the business suffers.

Second is the impact that a divorce has on a business legally. Figuring out what to do with a spouse-owned business can be one of the more complicated aspects of managing a divorce settlement. A number of factors play a role in this determination, including:

  • State law
  • The type of the business
  • Organization of the ownership of the business
  • The role both spouses played in the business
  • The date of the creation of the business

Couples do not have to face surprises when it comes to dealing with business ownership in the event of a divorce. There are a number of options available. For businesses that predate the marriage, a prenuptial agreement can spell out how the couple wants to deal with the business. There are also options with wills, trusts and business documents that can handle the event of a divorce to minimize its impact on a business’s continuing operations.

Couples should remember that the impact of a divorce on business ownership extends beyond the former spouses. Other employees and their own families will also have to deal with the consequences. Have you faced this situation with your own divorce? How were you able to arrive at a solution for how to deal with your business?

John K. Grubb & Associates, P.C. – Houston divorce lawyers

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