Divorce finances can be complex, especially if the couple has amassed significant assets and property. It can become even more complicated if one or both of the spouses own a business since this, too, can be considered a marital asset that must be divided. How does the court divide a business under Texas community property laws? If this is your situation, a Texas divorce attorney can help ensure you receive your fair share of the marital estate.

Is the Business Marital Property?

The first thing that needs to be addressed is determining whether or not the business actually is marital property. If the business opened before the couple married, the court may determine that any increase in value or assets that took place during the marriage could be considered part of the marital estate and subject to division. If the business opened during the marriage, then it is very likely that it will qualify as marital property.

One major exception to either of the above is if the couple signed a prenuptial or postnuptial agreement that specifically stated that the business was not part of the marital estate and would be protected from division should the couple divorce.

What Is the Value of the Business?

Once it has been determined that the business is marital property, the next step is determining its value. Generally, both parties will hire their own business valuation experts to come up with the financial worth of the company.

Divorcing spouses are expected to disclose their assets and income during a divorce. This is especially crucial in a high-asset divorce case. Unfortunately, some spouses try to prevent the other spouse from getting their fair share of the marital estate by transferring assets to other individuals, lying about the value of their assets, or even physically hiding cash or valuables.

If you are getting divorced, it is important to be vigilant for signs of this type of financial fraud. A divorce outcome should be based on accurate financial information from both parties. Not only does lying about finances rob the other spouse of a fair outcome, it is also unlawful.

Ways a Spouse May Hide Assets During Divorce

One of the most common ways that divorcing spouses commit financial fraud is by failing to disclose all of their assets. For example, a spouse may have significant funds stored in an offshore bank account that the other spouse is not aware of. When it comes time to fill out a financial disclosure and start the property division negotiation process, the spouse simply fails to bring up this bank account.

Spouses may also undervalue assets by claiming they are worth much less than the actual value. This is easiest to accomplish with difficult-to-value assets such as business interests, investments, digital currency, or even fine art.