Going through a divorce is tough no matter who you are or what type of relationship you are getting out of. There are so many steps required to go through before you are legally not married anymore. There’s the issue of custody of children, dividing up bank accounts and property and even dealing with marital assets in the terms of owned and operated businesses. In Colorado, all of your property must be classified in terms of whether you both own it or if it is individually owned by one spouse, before it can be taken to the court system and divided evenly. A marital asset is any property or small business that is owned and operated and was acquired by both parties of the marriage, during the union. Even if one party had a business prior to the marriage and it grew in profit during the marriage, technically the other spouse can be considered an owner and that is when it turns into marital assets. The courts will then divide things properly depending on revenue and a few other circumstances involving the business owned.
Dividing a Business as a Marital Asset
When it comes to splitting up businesses or marital assets in a divorce in the state of Colorado, the courts will look into a few different things: first, they will determine the contribution of each spouse in the business. Was one a more prevalent and active owner/worker or were they both equally sharing time in the work that was required to up keep the business? Second, they will determine the how much value the property had to each spouse. Third, the courts will consider the economic circumstances of each spouse and lastly, they will weigh if there was an increase or decrease in the value of separates properties during the union.
Business and marital assets are not taken lightly when it comes to getting a divorce in Colorado. Depending on how much revenue the business gets throughout each month and year can alter the way things are separated as well. Marital assets involving businesses in a Colorado divorce are ranked high on the list of important factors to decide in the separation of assets and property.