Since they know the ins and outs of their business, some divorcing spouses agree on the business division terms outside of court. This is possible through alternative dispute resolution methods, such as mediation. On top of benefits like time and cost-efficiency, mediation also allows spouses to address business issues that only they thoroughly know of.
Fortunately, most states allow and even recommend mediation as an alternative to divorce litigation. But each state has a different set of rules on this, and you must familiarize yourself with the rules applicable in your state.
Divorce mediation in Texas
Texas allows spouses to privately settle divorce issues, including property division, before filing the petition for dissolution of marriage or even in the middle of the divorce proceeding. While the mediation’s result will depend on the unique circumstances of each case, business division in a divorce usually ends up in three ways: a buyout, a joint ownership or a sale coupled with splitting proceeds.
The mediation agreement’s validity
The settlement agreement is binding once both parties sign the document, which states, in capital letters, bold typeface or underlined, that the agreement is not subject to revocation. If attorneys were present during the mediation, they must also sign the document.
While mediation gives parties control over the property division, it is still critical for each party to carefully prepare for the settlement. This includes preparing the list of assets and debts, a professionally calculated valuation of businesses and other necessary documents. By doing so, each party can protect their fair share of the business and other marital assets.