The Pitfalls of Listening to the Wrong Divorce Advice
Divorce advice flows freely from friends and family. You mention you are getting a divorce and the floodgates of opinion open. Anyone who has been divorced suddenly becomes an expert and wants to tell you their story along with what to do and what to avoid. If finances were a thorny issue, they may advise you keep your house, avoid selling your business, hold onto your stocks or offer up some other specific piece of financial opinion.
However, the pitfalls of such advice are legion. Times change and situations differ. Divorce laws and judgments vary depending on the state and county where you live. Some states are equitable distribution states, and other states are community property states. Equitable distribution states divide property fairly, but not necessarily equally. In contrast, community property states divide martial assets in a 50/50 split or equally. Your relative who went through divorce in New York dealt with very different legal parameters than your relative in California. Furthermore, you can be sure that neither one of them are experts on Texas divorce law.
Whether you are discussing the division of stock portfolios, real estate investments or family-owned businesses, no two situations are the same.
Get Legal Advice from Divorce Attorneys and Financial Experts
It is wise to seek the advice of a Texas attorney who primarily focuses on family law and divorce. If you have a family owned or privately owned business, ensure your lawyer has experience dealing with asset division in this type of divorce.
Consult with financial experts who can assist with business valuation and help you determine the best course of action. In some instances, continuing to own and run the business is to the client’s advantage. If the market is down at the time, both parties could lose the potential value of their asset due to the sale.
Depending on the judge hearing the case, reaching an out-of-court settlement may allow you to incorporate this option, whereas litigating in court may result in an order to sell the business.