When a husband and his wife choose to dissolve their marital relationship, there are many issues that they need to consider. Considering the emotional stress that they often go through during a divorce and keeping in mind all the complex financial matters that come up, including the issues involved with property division, it is not at all an easy situation for them. However, it is something that plays a key role in many divorces, especially considering the implications that it may have on the future financial prospects of the divorcing couple.
A common occurrence among divorcing couples in Texas is for one or both of them to be the owner of a business. It may prove to be rather difficult to properly evaluate and divide the business or stake in the business between the husband and the wife and it may be. Proper financial planning could help determine an agreeable outcome. Moreover, if the could included a prenuptial or postnuptial agreement, this could help indicate how exactly this asset and property is treated.
An important thing that the couple should remember is that a delay in settling the divorce and dividing the property may be detrimental for a divorcing couple in Texas, according to the Vice President of the American Association of Individual Investors, who worked on valuation of closely held businesses. Texas recognizes community property and, in case of a divorce, it becomes important to figure out whether the business owner’s spouse has any stake in the business and, if so, to what extent.
According to this expert, if one or both parties delay the divorce process, evaluation and equitable division of property simply to cause difficulty for the other, the only result may be that the legal costs involved will increase, which does not help anyone. Therefore, in the event of a divorce, both parties should aim to complete the process in an amicable and expeditious manner.
Dissolution can be a very complex and emotional event. It could lead to disputes and lengthy debates over who gets what. Those struggling with the process should seek independent advice. This could help them get through the process, develop and fair divorce agreement and protect their rights and interests.
Source: The Wall Street Journal, “The Biggest Financial Mistakes Divorcing Couples Make,” April 24, 2014