Navigating Divorce Proceedings in Texas: Protect Your Business Assets

Divorce
Assets
10/2/2023

Divorce can be a challenging and emotionally charged process, and when it involves the protection of your business assets or professional practice, the stakes can be even higher. At Coldwell Bowes, we specialize in Central Texas divorce and family law, and we understand the intricacies of safeguarding what you've worked so hard to build. Whether you're a family-owned business, a medical clinic, a law firm, or any other professional practice, we are here to provide you with the guidance and legal expertise you need. While specific details may vary from county to county, this blog post will provide you with a general overview of how to protect your business assets while navigating a divorce in the Lone Star State. 

The Importance of Protecting Your Business Assets

For many individuals, their business or professional practice represents not only their livelihood but also a significant part of their financial security. Protecting these assets during divorce is crucial. There are various ways our team of lawyers is equipped to help you protect your assets. 

Property Appraisals and Classification 

We have a deep understanding of Texas divorce property rights and work with independent professionals in business valuation to ensure a clear and well-presented case. Properly appraising and classifying your business or practice is vital for a fair resolution.

Protection Through Prenuptial Agreements

Prenuptial agreements can provide a level of protection for your business or practice. However, it's essential to understand that Texas law treats both parties equally when it comes to property rights. We have extensive experience in prenuptial agreement litigation and can advise you on how it might impact your divorce, especially regarding any commingled assets or increased value.

Know the Stakes 

Divorce often involves the division of property, debts, and assets acquired during the marriage. Retirement accounts, such as 401(k)s, IRAs, and pensions, and business assets, such as family-owned businesses, medical clinics, dental offices, franchises and other investments, are typically considered marital property subject to division.

Understanding Discovery, Disclosure, and Mediation or Settlement Negotiations

In a divorce, both parties are required to exchange financial information and other relevant documents through a process called discovery. This ensures transparency in property and debt division. In addition, mediation is often encouraged to help parties reach mutually agreeable solutions. If an agreement is reached, it can be presented to the court for approval. Mediation in divorce proceedings in Texas is a confidential process in which a neutral third party, known as a mediator, helps the divorcing spouses work together to reach mutually acceptable agreements on various issues related to their divorce. Mediation is a common alternative dispute resolution (ADR) method used to resolve conflicts and is encouraged and required in some cases by Texas courts as a means to settle divorce cases amicably. Read more about the pros and cons of mediation in our blog, “Exploring Alternative Dispute Resolution: The Pros and Cons of Mediation vs. Court”.  

Conclusion

Navigating divorce proceedings in Texas can be a challenging journey, filled with legal and emotional complexities. If you're facing divorce and need to protect your business assets or professional practice, you can trust the attorneys at Coldwell Bowes to provide you with the legal expertise and guidance you need. Our team is dedicated to ensuring that your case is well-presented and that your interests are safeguarded throughout the process. Contact us today for a consultation, and let us help you secure your future.

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