Texas residents may be aware of many issues surrounding divorce. What they may not be aware of is that if they are a business owner, their business could be at risk should they face divorce. A recent article described in details the potential loss a person could face, specifically a person that owns a medical practice.
There are nine 'community property' states. Texas is one of them. This means that anything acquired during the marriage is typically split 50/50 during the divorce. While this may work in favor of some spouses, for those that own a business or have built a business during the course of the marriage this could prove to be a challenge. However, as with most divorces, several things can be challenged when it comes time to go to court.
One of the things that could be brought up when a couple goes to court is the length of time the couple was married. If they were together as the practicing spouse was in medical school, then the percentage of the practice the physician will maintain could be less than if he was already licensed before the marriage. The other spouse's profession will be taken into consideration as well. If one was a stay at home spouse or parent that may be taken into consideration when it comes time for division of property and the possibility of alimony.
Any Texas business owner facing the possibility of divorce may benefit from looking into their rights under the applicable state laws. Taking a proactive approach may prove to be a wise decision when moving forward and dividing property. By having an understanding of one's rights, they can be more hopeful a positive outcome will occur.
Source: medscape.com, "How Divorce Could Affect Your Medical Practice," Dennis G. Murray, July 17, 2013