Business Valuations Attorney
in Denver, Colorado
Lawyer Helping Spouses Address Business Assets During Divorce Cases in Littleton, Columbine, and Boulder
A divorce will often involve multiple types of financial issues that will need to be addressed and resolved. This is especially true in cases where a couple has a high net worth, including when a spouse is a business owner. A business represents a significant investment of money, time, and resources, and it may also be a source of income for one or both spouses. During a divorce, determining the best way to address a business can sometimes be difficult, especially if one spouse wishes to maintain sole ownership of the business and ensure that it can continue operating. In these cases, it is important to work with a divorce lawyer who is experienced in business valuation and asset division.
Attorney Susan Pesch and the team at Pesch Law Office PC have worked with spouses to address complex financial issues in a wide variety of divorce cases. With our understanding of Colorado's divorce laws and our experience negotiating amicable divorce settlements, we can provide you with guidance on how to resolve matters related to a business and other valuable assets. By understanding your rights while also considering your best case scenario and worst case scenario, you can determine the best ways to reach an agreement that will be beneficial for both of you.
Division of Business Interests
When divorcing spouses determine how to divide their assets and debts, all property owned by the spouses, including marital property and separate property, will need to be considered. If either spouse started a new business or acquired an ownership share in a company during their marriage, the business will be considered a marital asset. If a spouse owned a business before their marriage, it will be considered separate property; however, any increase in value for the business during the marriage will be considered part of the marital estate.
Regardless of whether a business is considered marital or separate property, it will play an important role in the decisions made during divorce. To ensure that spouses fully understand the value of all the assets they own, a business valuation will most likely need to be performed. This valuation may look at factors such as the business's assets and liabilities, its projected earnings over the next several years, and the profits that could be earned if the business was sold to a new owner. The value of the business is not simply its income reported to the IRS.
Valuing Businesses in Divorce?
When making decisions about ownership of a business that is part of the marital estate, spouses will usually choose one of the following options:
The business may be sold, and the profits earned from the sale will be divided between the spouses during the asset division process. This may not be an acceptable option if the business is the primary source of income for either spouse.
One spouse may maintain full ownership of the business, while the other spouse receives other marital assets of a similar value. This is often the preferred option if a business is primarily managed by one spouse.
The spouses may continue to co-own the business after their divorce. This may be the best option if both spouses are involved in managing the business and will be able to work together as partners. In these situations, spouses will most likely want to create a partnership agreement that defines their roles and responsibilities, and their divorce settlement may give either spouse the option to "buy out" the other spouse's share of the business in the future.
Contact Our Jefferson County Business Asset Division Attorney
If you or your spouse are a business owner, you will want to make sure to understand how to divide your marital assets in a way that will protect your financial interests. At Pesch Law Office PC, we can provide you with legal help as you negotiate a divorce settlement that will meet your needs both now and in the future. Contact our office and arrange a consultation by calling. We assist with high asset divorces in Highlands Ranch, Broomfield County, Denver, Arapahoe County, Boulder County, Columbine, Weld County, Douglas County, Golden, Boulder, Jefferson County, Littleton, and throughout the Denver metro region.