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Division of Business Assets in a Texas Divorce: Expert Insights from Rose Sanders Family Law Firm

by | Jun 17, 2023 | High-Asset Divocrce

Navigating the division of assets during a divorce is a complex endeavor, particularly when a business is involved. Here at Rose Sanders Family Law Firm, led by the seasoned legal duo Erica Rose and Charles Sanders, we guide clients through the intricacies of this process and fight for their fair share.

Texas follows the “community property” rule, meaning that most assets, including business interests acquired during the marriage, are considered marital property. Therefore, these are subject to division upon divorce. However, determining how a business asset is divided can be complex, requiring consideration of multiple factors:


  1. Valuation: The first step in dividing business assets is establishing the business’s value. This may require the input of expert financial analysts or business valuators, and consideration of various factors like the business’s income, assets, market conditions, and future earning potential
  2. Characterization: After determining the value, the business asset needs to be characterized as either separate or community property. A business started before the marriage is typically considered separate property, while a business started during the marriage is generally viewed as community property. However, these designations can be influenced by numerous factors, including the use of marital funds in the business or a spouse’s contributions to its growth.
  3. Division: Once the business has been valued and characterized, the court will decide on a just and right division of the asset. This could involve one spouse buying out the other’s interest, the business being sold and the proceeds divided, or in some cases, the ex-spouses continuing as business partners post-divorce.

The division of business assets in a divorce can significantly impact both parties’ financial futures, making it crucial to get it right. This process requires not only a deep understanding of Texas family law but also a detailed understanding of financial analysis, valuation methodologies, and negotiation strategies.

The expert team at Rose Sanders Family Law Firm, led by Erica Rose and Charles Sanders, provides clients with a comprehensive approach to the division of business assets in a divorce. They are equipped with extensive experience, and a network of financial experts and business valuators, ensuring their clients receive a fair and accurate division of assets.

Their commitment is to provide clients with clear, effective legal counsel throughout the divorce process, protecting their rights and interests at every step. If you are facing a divorce involving the division of business assets, don’t hesitate to reach out to Rose Sanders Family Law Firm at (713) 221-3773. Our priority is to ensure that you navigate this complex process with as much ease, clarity, and confidence as possible.