Divorce is never easy, but it might be the best option available if your marriage isn’t what it was at one time. One thing you will have to deal with is the division of your property and assets. However, if you have a Texas real estate business, you will want to protect it during your divorce. There are three ways you can do that.
Buy out your spouse
If you are worried about property division when you have a real estate business, one of your options may also be the easiest. You should consider buying out your estranged spouse. Because real estate is your livelihood, it’s only fair to want to protect the assets from it. You can hire a professional to estimate the value of your portfolio and then make an offer.
Before you do this, you should ensure that you have a document that is legally binding. It allows you to prove you own the business if a dispute arises in the future.
Form an LLC
Forming an LLC for your real estate business is a good idea even prior to your marriage. It allows the company and all of its assets to be considered unrelated to the marriage and you won’t have to worry about property division in that regard. However, you can still form an LLC even after your marriage.
Be aware that it’s essential to avoid mixing your personal and professional finances while married. It can end up working against you and the court may see your business as community property. This can occur even if you did form an LLC before your marriage.
Create a domestic asset trust
Creating a domestic asset trust is more complex than forming an LLC but can be worth it to protect your real estate assets from property division during your divorce. This allows your name to be removed from the property, but you are able to name yourself as a beneficiary. As a result, the assets are insulated.