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Divorce proof your business

Good business managers know how to minimize risk, but they may not realize that a marriage could represent a major risk to their business. Texas community property laws dictate that all property acquired during a marriage is owned by both spouses. This means that property is subject to asset division in the case of a divorce. Unless a couple takes certain legal steps, business assets and increases in valuation can easily become entangled in the asset division process should they divorce.

A prenup remains one of the best ways to protect a business's assets, and it is a smart choice for most marriages. A properly prepared prenuptial agreement can protect a business from being subject to property division laws. It can allow both spouses to still be a part of the business. In addition, a prenuptial agreement gives both spouses the highest degree of flexibility and control over the business's future, which may not be possible once the divorce process has started.

If the fate of a business is at risk during a divorce, it may be best to keep both former spouses as owners in the business. Marriage and business ownership can be separate legal statuses. If the business is structured in such a way that both spouses could continue as co-owners even if they are no longer married, then the business would not necessarily need to become part of the asset division process. Of course, this requires that both spouses be willing and able to continue to work with each other professionally.

Couples who own businesses together and neglect to plan for what would happen to it should they ever divorce may be taking a huge risk. Most businesses that enter into asset division end up being completely dissolved and the assets will be sold off so the money is lawfully split between both spouses. A divorce attorney may be able to advise clients about how they can best protect their businesses from divorce. This could include the creation of a prenup or trust or the restructuring of the business itself.

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Bruce Turner

In addition to his law degree, Bruce Turner has a master's degree in tax law and is Board Certified in Commercial Real Estate Law by the Texas Board of Legal Specialization.

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Turner, Bruce E.
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Bruce Turner with Bennett, Weston LaJone & Turner, P.C.

Attorney Bruce Turner is located in Dallas and represents people and businesses throughout DFW and the Metroplex, including Denton, Carrollton, Lewisville, Flower Mound, Farmers Branch, Irving, Las Colinas, Corinth, Highland Village, The Colony, Plano, Frisco, Allen, McKinney, Mesquite, Grand Prairie, Garland and Grapevine as well as Collin County, Denton County and Dallas County in Texas.

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