When a divorce involves a spouse who is a general partner, the case is rarely routine. These matters often evolve into complex business disputes, where ownership rights, management control, income streams, and personal liability intersect with Texas community property law. General partners typically hold broad management authority, personal liability for partnership obligations, and direct access to business finances, all of which can complicate property division when a marriage ends. In Texas, where community property principles govern divorce, the existence of a general partnership interest can significantly affect how assets, income, and liabilities are characterized and divided. If your divorce involves partnership interests, it is smart to consult an attorney to learn how you can safeguard your rights. At McClure Law Group, our capable Dallas divorce attorneys have extensive experience handling high-asset and business-related divorces, and if we represent you, we will fight to help you protect your financial future.
Characterization of General Partnership Interests Under Texas LawIn a divorce, when a spouse is a general partner, one of the first and most critical questions is whether the partnership interest is community property or separate property. Under Texas law, any ownership interest acquired during the marriage is presumed to be community property absent evidence to the contrary. A general partnership interest acquired before marriage, or received during marriage by gift or inheritance, may be separate property, but the burden of proof rests with the spouse asserting that claim. Even when the partnership interest itself is separate, income generated by the partnership during the marriage is generally considered community property.
Complications can arise when community resources have been used to support, grow, or stabilize the partnership. In divorce when a spouse is a general partner, courts may examine whether community funds were invested in the business, whether the non-partner spouse contributed labor or services, or whether partnership income was reinvested rather than distributed. These facts can give rise to reimbursement claims or affect the overall division of the marital estate.
Valuation of a General Partnership InterestValuation is frequently one of the most contested aspects of divorce when a spouse is a general partner. Unlike publicly traded interests, general partnership interests are not easily valued, and their worth may depend heavily on the ongoing participation of the partner spouse. Texas courts often rely on financial experts to assess the fair market value of the partnership interest, taking into account assets, liabilities, income streams, and goodwill. The valuation process must also consider whether the partnership agreement restricts transferability or imposes penalties upon withdrawal.
In many cases, a general partner’s interest cannot be sold without the consent of the other partners, which can affect both the value and the divisibility of the partnership. As such, when a spouse is a general partner, divorce often leads courts to award the partnership interest to the partner spouse, while compensating the other spouse with an offset against other community assets. This approach allows the business to continue operating while still achieving a fair division of marital property under Texas law.
Management, Control, and Liability ConcernsGeneral partners typically exercise significant control over partnership operations and bear personal liability for partnership debts and obligations. In a divorce when a spouse is a general partner, this control can raise concerns about transparency, asset dissipation, or manipulation of income during the divorce process. Texas courts may issue temporary orders to limit certain actions, require regular financial reporting, or restrict extraordinary business transactions while the divorce is pending.
Liability is another consideration for courts in divorce when a spouse is a general partner. Because general partners may be personally responsible for partnership debts, courts are cautious about assigning partnership interests to a non-partner spouse who lacks management authority or business involvement. Divorce when a spouse is a general partner therefore requires balancing the non-partner spouse’s right to a fair share of the community estate with the practical realities of business operations and risk exposure.
Consult Experienced Dallas Divorce Attorneys Regarding DivorceIf you intend to seek a divorce, and you or your spouse is a general partner, it is essential to work with attorneys who can navigate the legal and financial complexities. At McClure Law Group, our seasoned Dallas divorce attorneys regularly represent business owners and spouses in high-asset divorces, and if you hire us, we will work diligently to protect your interests and pursue a favorable outcome. Our main office is located in Dallas, and we have a Collin County office in Plano where we meet clients by appointment. We represent individuals in Garland, Fort Worth, McKinney, Richardson, Frisco, Irving, and Rockwall, as well as throughout Dallas, Collin, Grayson, Tarrant, Rockwall, and Denton Counties. Contact McClure Law Group at 214.692.8200 or complete our online form to schedule a confidential consultation with one of our experienced attorneys.