A business is one of the most difficult assets to divide during a divorce in Colorado. Not only is it hard to identify the contribution of each individual spouse to the success or growth of the business, but businesses also have sentimental or emotional value to each of the spouses, and therefore, disputes over the division of the business can become contested.
Before you decide what to do with your business, it’s important to get an evaluation done. A business valuation is done by a team of experts that typically includes appraisers, experts, and other professionals. The evaluation will depend on a number of factors, including the assets owned by the business, debts and liabilities, income, profits generated by the business, and other factors.
A valuation will determine tangible property like the physical assets that the business owns including office equipment and machinery, or intangible assets like goodwill, trademark and patents. The profitability of the business is usually determined by taking into consideration its income, which is revenue generated from the operations of the company as well as expenses, including the day-to-day expenses of running the company, overheads, and other costs.
A business can be considered a marital asset, which means that either of the spouses have a share in it. Therefore, it is important to get an evaluation done, and also to ensure that your rights are protected during division of the business.
Once you have evaluated your business, you can go ahead and decide what to do with it. Sometimes, spouses prefer to sell off the business, and divide the proceeds. In other cases, spouses may decide that they want to keep their personal feelings aside, and continue running the business as partners. Whatever you decide to do, it’s important to consult with a divorce lawyer in Colorado, before you make a decision about a divorce.