Proving You Own Part of Your Spouse's Business in a Texas Divorce
Divorce becomes more complicated when one spouse owns a business, especially if the other spouse contributed time, effort, or money to help build it. If you live in Austin or Travis County and are divorcing someone who runs a small business, you may be wondering whether you have any right to a share of that business, even if your name is not on the paperwork or there is a prenuptial agreement in place.
Texas is a community property state, and in many cases, people who helped their spouse grow a business may have a valid claim to part of its value. Understanding how to prove your contribution is key to securing a fair outcome, and our Texas board-certified family law attorneys can help you understand whether and how you can do just that.
When Is a Business Considered Community Property?
In Texas, community property includes most assets acquired or grown during the marriage — regardless of which spouse’s name is on the title. This often includes business interests, unless the business was started before the marriage and kept entirely separate from marital finances. Even then, appreciation in the value of the business during the marriage may still be subject to division.
If you helped grow the business, worked for it without pay, or sacrificed your own career to support it, you may be entitled to part of the business or a financial offset.
Can a Prenuptial or Postnuptial Agreement Keep Me from Owning Any of My Spouse’s Business?
Prenuptial agreements can complicate things, but they are not always the final word. These agreements must be valid and enforceable under Texas law. If the agreement is vague, unfair, or improperly executed, it may be challenged. Even if the agreement states the business is separate property, any commingling of funds or marital effort used to expand the business may give you grounds to claim a share of the value.
How Can You Prove You Deserve a Share of the Business in a Divorce?
You do not need to be a co-owner on paper to show that you have a financial interest in your spouse’s business. A divorce lawyer can help you gather evidence such as:
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Pay stubs or tax records showing your work for the business
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Bank statements showing joint funds invested in the business
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Emails, contracts, or invoices demonstrating your involvement in daily operations
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Testimony about your role in managing, promoting, or supporting the business
The court may also consider indirect contributions, like handling all household duties so your spouse could focus on the company. A forensic accountant may be brought in to value the business and determine how much of it should be divided.
Contact an Austin, TX Divorce Lawyer for Complex Property Division
If you helped build your spouse’s business and want to ensure your efforts are recognized in your divorce, contact Powers Kerr & Rashidi, PLLC. Our Travis County, TX family law attorneys have experience handling high-conflict and financially complex divorces in Travis County. We will review your case, gather evidence, and fight for your fair share. Call 512-610-6199 to schedule your free consultation today.