When “I do” becomes “I don’t” married couples face agonizing emotional and financial quandaries. What do we do with the kids, the house, the dog, the boat, etc. How do we divide up our investments, retirement accounts, real estate, etc? But, what about the business owner going through a divorce? What are the consequences to your business during this time? Your business may be a professional practice (medical, legal, real estate) or retail (restaurant, store) either type may be negatively affected by the divorce if you do not take the necessary precautions.

Business owners going through the big “D” are often blindsided to find out their business may be at stake during divorce proceedings. This is true even if you owned the business prior to the marriage and your better-half never assisted you with or had any interest in your business. If your business was created during the marriage the court will probably find that your spouse has some monetary interest in the business whether or not he or she even knew what type of business you ran. The phrase “time is money” has never hit so hard seeing as while you are married your time is considered a marital asset. If you used that time to work on your business, you are using a marital asset to run your business, and so the marriage may acquire an interest in the business.

Texas being a community property state, entitles your spouse to one-half of the value of your business if started during the marriage. A business started during marriage with joint funds, is community property in Texas. A business that was already running or was created with separate funds is more complex, since the community interest may involve joint funds used to expand the business and any appreciation attributed to that contribution. If both spouses played a role in the operation, the contribution of each person must be considered. Even if no joint funds are contributed, a marital interest may exist and should be reviewed by a family law attorney. The key elements to determine whether the property is community or separate are: the source of funds for the startup business, the date of marriage, the date of valuation due to divorce, and the contribution of each spouse to the business.

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With summer heating things up, it is time to head to the coast to cool down, but do not try to get there too quickly or you may end up spending more on your weekend getaway than you planned. Everyone has been pulled over for speeding a time or two (or three or four), but a simple, speeding ticket can have major consequences. The National Highway Traffic and Safety Administration cites speeding as a factor in one-third of all crash-related fatalities and Texas is cracking down by adding traffic cameras on the road ways and adding surcharges on top of already hefty fines. What do you do? Don’t speed.

If you do speed and get caught, fight the ticket because a $100 ticket could cost you more than $2000 if your insurance company gets a hold of it. Most major insurance companies raise your premiums after just one ticket. For example, assume you are paying around the nation average rates of $800 annually for liability, collision, and comprehensive coverage. Your insurance company may offer a 25% good driver discount so you would pay only $600. One speeding ticket could mean around a 25% increase from the base premium, which is a $200 increase or $600 over three years on the base premium – good bye good driver discount, hello surcharges. First, find what your driving records looks like by requesting a copy of your driving record from the Department of Public Safety (DPS) at:
http://www.texasonline.state.tx.us/NASApp/txdps/TXDPSLicenseeManager.

Make sure it is accurate and report any inaccuracies to DPS. Could you be facing a suspension if you receive another ticket? Call DPS (512-424-2600) to answer your questions and then call your insurance company to see what another ticket would mean to your rates. What they say may help get the lead out your foot.

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