Divorce for business owners can be complex. The division of marital assets and debts can be especially complicated when one or both spouses own a business. At Stahly Mehrtens Miner LLC, our Denver divorce lawyers have extensive experience representing business owners in divorce. We understand the unique challenges involved and can help you protect your interests while navigating the divorce process.
Schedule a consultation today to discuss your divorce with one of our experienced Denver business owners divorce attorneys. We will work with you to develop a personalized strategy that meets your specific needs. Call us at 303-797-2900 or contact us online to schedule your consultation today.
Determining If Your Business Is Separate or Marital Property
When a divorce is filed in Colorado, all assets must first be classified as either separate or marital. Although it may be simple to think that if you started your business before you were married that it is considered separate property, it’s not necessarily that simple. There are certain factors that may have made some or all of the business interests or income marital property regardless of whether you made your spouse a partial or co-owner.
It is best to get legal advice from a Denver divorce lawyer for business owners so that you understand what to expect and what your options may be.
How to Determine the Value of Your Business
Because your business or business interests are considered an asset, they must be valued if they are determined to be marital assets. Some of the most common ways that a business is valued are:
- Hiring a business valuation expert, such as a CPA
- Performing an asset-based valuation
- Performing an income-based valuation– this is a very common method used for professional service businesses
- Performing a market-based business valuation
- Using a combination of methods
Negotiating with Your Spouse
If it is determined that your business or business interests are marital property and they have been valued, one option you may have is to negotiate with your spouse so that you can take over their portion of the business or the business interests. You can do this by buying them out, trading other properties or assets in exchange for their share of the business, and more.
If you choose to go this route, you will need to make sure that the trade is as fair as possible, because the agreement will need to be approved by the court before being finalized. If you wish to have an unbiased third party guide you on your options, consider a mediation lawyer in Denver.
What If You’re Joint Owners or Co-Managers?
If you and your spouse are joint owners or co-managers, it’s crucial to examine the working relationship and what options you may have should it impact the business in a negative manner. There are instances where couples make better work partners than spouses. However, if the business is suffering or if you believe it will suffer, you may wish to talk with your attorney or attend mediation with your spouse to determine what course of action you can take to minimize the impact on the business now and in the future. It’s imperative to consider how your working relationship will impact both clients and employees.
Additionally, you and your spouse may choose to sell the business and start over if you do not wish to stay in business together. If you go this route, you will likely split the proceeds from selling.
Contact Our Denver Business Owners Divorce Attorney Today
If you’re a business owner and involved in a divorce, make sure that you have the proper legal representation. Contact a Denver business owners divorce lawyer at Stahly Mehrtens Miner LLC today to schedule a consultation. Call us at 303-797-2900 or contact us online to get started.