Coloradans going through a divorce will have many considerations to think about as the case moves forward. For those who were involved in a family-owned business, the division of the business assets can be complicated and difficult. Since this property often has significant value, having legal assistance from the beginning is one of the most critical factors in reaching an acceptable resolution.
From the start, the parties must think about their goals. If one does not want to continue involvement with the business, then it might be better to let the other spouse buy out their share. To do this effectively, it is critical to know how much the business is worth. This can be achieved through a third-party appraisal. Next, there are three basic alternatives. The alternatives are: one spouse retaining the business; both retaining the business; or both selling the business.
Many couples will decide that one should retain the business. One spouse might have started the business and was responsible for its day-to-day operation. The spouse who ran it will buy out the other spouse. Tax considerations must also be factored in. The payment can be structured in a variety of ways, depending on liquid assets and more.
If both spouses want to stay involved in the business, this is possible if the couple can get beyond the differences that sparked the marital breakdown and remain amicable for the sake of the business. Finally, selling the business is the simplest way to handle the issue, with both sharing the proceeds.
Handling business assets when getting a divorce can be confusing. The business itself and the circumstances surrounding the divorce will decide how the parties will proceed. A law firm experienced in the division of marital property, particularly business assets, is imperative to a case.