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Ownership docs key to safeguarding business interests in divorce

Texas is well-known across the country as a business-friendly state. With a relatively healthy economy and a culture known for independence and common sense, it's no surprise that countless businesses, both small and large, form a ubiquitous presence in the state. When a couple who has become business partners decides to divorce, though, the positive perks of being a business owner may quickly fade for some soon-to-be-ex-spouses.

Often, a divorce between spouses who own or run a business together is a high asset divorce. This means that the property division aspect of the breakup is a bit more involved than it would be between couples with few assets. As business owners know, entrepreneurship is with fraught with rewards, but also can involve significant financial complications, even when business is booming. Just like marriage, though, there are often unpredictable ups and downs that can make it challenging to plan for the future.

One way that spouses can safeguard their own financial futures is by reviewing the ownership documents related to their business. No matter how hard someone has worked at a business, if his or her name is not listed on ownership papers, that person can be vulnerable should a divorce arise. Even if the other spouse agrees that his or her soon-to-be-ex was a partner, this fact needs to be documented in order to ensure a fair divorce outcome.

No business contributor wants to see his or her hard work evaporate, which is why a careful examination of the documents surrounding ownership is so important. Still, making changes to ownership papers is not a simple task, and both partners must be involved in the decision. The advice of a lawyer can serve as a helpful guide in this regard, so that both partners understand the impact of altering business documents as they relate to divorce.

Source: WOTV 4, "How to keep your business partnership after divorce," Gail Saukas, April 25, 2014

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Attorney Christine K. Lincoln

Christine K. Lincoln offers sound counsel and legal services to protect clients and their families facing divorce and other family disputes.

She will take the time to understand your individual needs and develop a comprehensive solution to protect your rights and interests.

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