Like many Colorado entrepreneurs, your company may not be able to compete toe-to-toe with a multi-million dollar corporation; however, you worked hard to bring your dream to fruition and do not want to lose what you’ve worked so hard to attain. If you’re worried about navigating property division proceedings in divorce, there’s a lot you can do ahead of time to stay updated on state laws and ensure that you’ll be making well-informed decisions.
The best means for protecting your small business in divorce is signing a prenuptial agreement before marriage. Hopefully, you did that, but if not, try not to worry too much as there may still be available options for maintaining separate ownership of your business, especially if you look into postnuptial contracts before filing your divorce petition. The good news is that such contracts take effect as soon as both parties sign them.
Protect business interests by enlisting outside support
You may be a real go-getter; it’s likely because most entrepreneurs are. Your drive and self-motivation may have helped your small business soar to success. In divorce, however, there’s no need to go it alone. In fact, doing so might be a detriment in court. Especially regarding property division proceedings, it can be quite helpful to speak to financial advisers ahead of time as well as someone well versed in Colorado divorce laws.
Business valuation is a critical factor
Full disclosure and transparency are necessary when listing marital assets and liabilities to negotiate a divorce settlement. In order to know the true value of your business, you must seek a business valuation. This value typically aligns with the fair market value of your business from the date of your marital separation. If you and your spouse each own a business, such issues can be quite complex. Colorado operates under equitable property division laws, meaning not all marital asset splits are 50/50.
Finalizing your divorce
Your business may be your most valuable asset. It’s understandable that you want to make sure you walk away from your divorce with all that you’re entitled to. Many business owners take hard financial hits if they are uninformed or not prepared for property division proceedings. Those who seek experienced legal guidance ahead of time typically fare best when the goal is to keep financial losses as low as possible. An attorney knows how to protect a client’s business interests and avoid financial pitfalls in divorce.