According to the Centers for Disease Control and Prevention's National Center for Health Statistics, there is a 33 percent probability of a first marriage ending in separation or divorce within 10 years. Many of these divorcing couples find themselves considering how to split not only the furniture, the kids and the china, but also the family business.
Entrepreneurial Couples
Often called couplepreneurs, coprenuers or entrepreneurial couples, husbands and wives who run businesses together account for at least a quarter of a million businesses in the United States. Couples who blend business plans and marital bliss often take on a high degree of risk, economically and emotionally. This unique self-employment scheme is no different from the traditional Ma and Pa shops, but in today's more technologically, financially and legally savvy world, there are many challenges.
Couples often choose to start businesses together because of tough financial times, corporate downsizing or lack of upward mobility in jobs. The success of a couple-run business relies on both gross receipts and more on relationship strength. The business couple needs to have excellent communication, consistent problem-solving and conflict-management skills, specific designation of duties, clear community involvement, sound customer service and a commitment to being financially successful. And husband and wife must also truly enjoy spending time together.
A Marriage May End but Life Goes On
Just as financial markets have highs and lows, so do marriages. In some cases, couples cannot recover from their personal differences and their businesses may be affected. For business couples considering divorce, settlements can be complicated by the nature and extent of the couple's enterprise.
Distinctions between marital (community) and separate property get lost in couple-owned companies; however, property distribution options will depend on whether the couple wants to continue or close their existing business. Structured settlements, tax consequences and buy-sell or buy-out agreements are legitimate considerations. Accurate record keeping and property valuation will be crucial in designing a solution.
What a Texas Attorney Can Do to Help
In marriage and business, couples start with a plan for emotional and financial success. When those plans change and couples decide to end their personal and business relationships, there are fair and equitable options available.
A Houston attorney experienced in both family and business law can work to find an acceptable resolution for the parties involved. A knowledgeable lawyer can find creative solutions that align with their clients' interests. If you are contemplating a divorce, or just planning for the unexpected, contact a reputable attorney to discuss what possibilities exist for your family business.
