An equitable division of assets is an indispensable element of a divorce settlement. When it comes to personal assets, the conversation can be emotional, but relatively straight-forward. But what if one spouse owns a business? How will this asset be divided during the divorce settlement?
These are difficult, complicated questions, and it's easy for emotion to get wrapped up in them. You've worked hard to build this business. Why should your spouse benefit from that work by receiving a share of your business in the divorce settlement? The simple answer to this is the Colorado’s equitable distribution property division laws stipulate that all assets, including businesses will be divided between each spouse in an equitable, but not necessarily equal, manner.
Split Simple's divorce mediation process makes these conversations smoother and less melodramatic for Denver-area couples considering divorce. Our attorney-mediators know the relevant laws and know how to work with both parties to ensure a fair and equitable settlement is reached.
Here are some things you should know about dividing business assets during a divorce:
- Before anything else, the business assets in question must be fairly and comprehensively valued. This is crucial if the assets are to be divided fairly.
- As such, it's important that all relevant documents are gathered as soon as possible. Find tax documents, receipts, anything having to do with the finances of the business.
- You need to approach this issue professionally. Take emotion out of the equation. This is a business issue, not a personal one.
- Honesty and transparency are crucial. Don't try to hide assets or any relevant information. Be up-front and open about the business and its assets.
These are difficult questions, but they're answerable. There are no problems that can't be solved with divorce mediation.
Keep in mind that you will not be forced to make your ex-spouse a 50% owner of your business. You will also not be forced to sell your business and split the proceeds with your ex. Under Colorado’s equitable distribution laws, you will be entitled to keep your business and in return, your spouse will either receive:
- A monetary award commensurate with their share of the business
- Some other piece of marital property that is equivalent to their share of the business
Remember, under equitable distribution laws, the value of your business won’t necessarily be split equally between you and your spouse. In general, this typically isn’t considered to be a fair and equitable way to divide this asset. Instead, our attorney-mediators will help you and your ex-spouse arrive at a fair split of the practice based on each party’s contributions to the marriage.
If you own a business in the Denver, Colorado area and you want an approach to divorce that will respect your accomplishments and help you find fair solutions, divorce mediation is the right choice. Please call Split Simple today at 855-665-9920 for a free consultation.