How could divorce impact my business?

On Behalf of | Jul 23, 2019 | Uncategorized

When you get a divorce in Colorado, it does not just affect you and your spouse. You probably know it will affect your children. It also affects your extended family. It may even affect your business if you are a business owner. That also means it affects any business partners you have. This can mean trouble for your finances and stability post-divorce.

According to SMB CEO, the chances are high that your business is marital property in some way, which means it becomes a part of your divorce. It is an asset to be divided between you and your spouse. Unless you have prepared beforehand, this could mean your spouse becomes a co-owner or that you have to either come up with the money to buy out your spouse or sell your business and split the profits.

Ideally, you will have prepared for this situation and have an agreement of some type in place that protects your business. However, many people do not plan ahead or even think about what will happen with the business should the marriage fail. So, once you are in the situation of a divorce, you have to figure out what to do.

You have the options mentioned before, but another, and the most common, option is to give up other assets so you can keep control of the business. This may leave you with little but the business, depending on your marital assets, but it means you maintain control over the business. This may be the best course of action if you do not have the money to buy out your spouse, do not want to run the business with your spouse or do not want to sell the business. This information is for education and is not legal advice.

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