Dallas, TX family law attorney Lisa E. McKnight talks about family businesses in a divorce and how they are usually handled.
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This is very tricky. A business like a sole proprietorship of a family owned business is an asset to be divided by the court. Very rarely will the parties continue to jointly own the business after the divorce that is a recipe for disaster, don’t recommend it. Sometimes there’s been cases where it can’t be avoided but normally, either one spouse will be awarded the business or the business will be sold. And so usually the spouse that has been operating the business or running the business will be awarded the business and then there will be a value assigned to that and the other spouse will get offsetting property equal to the value or that spouse may have to buy them out of the value.