While the process of dividing marital wealth can be daunting under any situation, there may be some instances in which things may prove more complex in nature. If you own a business, you might have questions about the role this asset will play in legal proceedings and what steps you can take to protect its future.
After putting significant time and effort into growing a successful enterprise, you might not want to let anything disrupt the longevity of your company. There may be various factors that could influence your available options, and addressing such topics might be essential to preparing for the subsequent process.
Factors to consider regarding business assets
It may be understandable to have concerns about how a divorce could affect your Colorado business. Some examples of topics to consider as you prepare to navigate this process might include:
- Marital or separate: One of the first steps to take could involve determining whether your business is marital or separate property. However, this might not always prove a simple task.
- Healthy salary: If your business is a separate asset, paying yourself a healthy salary and taking steps to keep business assets separate from marital wealth could be vital to keeping it from losing its separate identity.
- Prenuptial/postnuptial agreements: It may also be vital to address whether you have existing arrangements, such as prenuptial or postnuptial agreements, as these may depict the role your business might play in divorce.
- Buyout agreements: The presence of buyout agreements could also provide protection to business assets in divorce. If you have business partners, there may also be other precautions in place for a similar change in life.
The role your business plays in divorce may also hinge on whether your soon-to-be ex-spouse worked in the company and contributed to the overall success of the endeavor.
Knowing your options
If your business or a portion thereof is deemed marital wealth, such assets could play a significant role during the end of your marriage. When facing similar concerns, you might be uncertain of what steps you can take to safeguard your company’s future. Obtaining guidance on the role your business might play could be vital to preparing to make informed decisions about your options. This could help place you in a better position to pursue an outcome that focuses on preserving your future interests.