One of the more complicated aspects of asset division during a divorce in Colorado is the division of the business. Depending on the circumstances, this could actually be one of the more expensive losses for you in the divorce.
If you own a business, the best thing to do would be to define what happens to the business in the event of a divorce before you get married, in a prenuptial agreement. However, if you did not get a prenuptial agreement, then it falls to the court to divide your business for you. Expect the process to become contentious and complicated.
You may not be safe even if you owned the business before you got married. Any increase in the in the value of the business over the course of the marriage will be considered marital property in the state of Colorado. The right of the spouse to your business could be even higher, if they contributed financially, or in any other way to the business, like putting in long hours, and working for the business.
A professional evaluation of the business will be necessary before determining how the business will be divided. The business evaluation is done using a financial expert, like an accountant who specializes in conducting business valuations. Each party in the divorce can choose to have individual evaluators, to represent his or her interests. You can also have one single common evaluation.
A court in Colorado is likely to consider whether each spouse contributed equally to the growth of the business, or whether one was a more active worker for the success of the business than the other. Other factors that may be considered include the individual financial and economic circumstances of each spouse. So the more acceptable solutions involve selling off the business and dividing the proceeds. If you currently own a business and are involved in divorce proceedings, speak to a Colorado divorce lawyer about how your ownership of the business will be affected by your divorce.