The number of people over 50 getting a divorce is growing. Unfortunately, divorce tends to have a more drastic financial impact on women than it does on men and inflation is only making matters worse. That is why it is important not to rush to get it over with but to fight for what you believe you will need long-term.

Financial Impact of a Gray Divorce

After a gray divorce, women are more likely to live below the federal poverty line compared to men. Women may be at a disadvantage for some of the following reasons: 

• Women settle for lower-paying jobs that provide more flexibility so that they can take care of their children or their aging parents

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Reaching the conclusion that a marriage is beyond saying is an emotionally-charged realization for any couple. However, spouses who own a family business such as a restaurant have an extra layer of difficulty. If you or your spouse own a restaurant or other business, you may be unsure of what will happen if you divorce. Will we split ownership of the business 50/50? Should we sell the business? Situations like this are difficult to figure out – legally, financially, and personally. Consequently, it is highly recommended that business owners seeking a divorce work with a skilled attorney.

Who Has a Right to the Business?

As with any property division concern, divorcing spouses may be able to negotiate an agreement about how to divide assets. However, if the issue is litigated, it is important to understand how Texas property division laws apply to family businesses. Texas courts follow “community property” rules when dividing assets in a divorce. Property that a spouse owned before getting married is separate property. Marital property, on the other hand, is jointly held by both spouses. Most property that a spouse acquires during the marriage is considered marital property. However, the identity of an asset as marital or separate can change. For example, a business that a spouse owned before getting married may become marital property if the other spouse spent time, money, or resources growing the business.

Valuing Your Family Restaurant in a Divorce  

Before you can have a meaningful conversation about what to do with a family restaurant during divorce, you need to know the restaurant’s value. A financial professional experienced in valuing family businesses can determine the best method for reaching an accurate value. Once you know what the restaurant is worth, you can decide how to proceed.