Divorce is a complicated process, one that will affect almost every area of your life, and your small business may not be an exception. If you are facing a divorce, you naturally have concerns about how this process will affect the Colorado business that you worked so hard to build and maintain.
With the appropriate protections in place and knowledgeable guidance by your side, it is possible to protect your business during a divorce. You would be wise to educate yourself on your property rights and what to expect. This effort can help you prepare for the divorce process and know what to expect for your life after everything is final.
Before a divorce
There are ways that savvy business owners can put certain protections in place, even if divorce is no where on the horizon. Some of the beneficial steps you may consider include:
- Drafting a prenuptial agreement
- Keeping accurate and updated records
- Not comingling marital property with business property
- Using separate money for business-related needs
When marital property begins to mix with non-marital property, it could quickly become the basis for a fight over who gets what. If you were already running and operating your business before you got married, you could find that you have to share a portion of business assets with your spouse during a divorce if comingled accounts paid for anything business related.
During a divorce
Every divorce is different, and the final outcome of a battle over property division will depend on the details of the individual case. The comingling of assets is a complex matter to understand, especially when there are valuable business assets at stake.
While income earned over the course of a marriage is almost always marital property, this does not necessarily mean that your spouse will automatically have a right to a share of the business you started before you got married. A prenuptial agreement can greatly reduce the chance of a complex battle over certain property, and keeping clear records can make it easier to properly understand the financial operations of your business.
Your post-divorce future is at stake
A divorce is a complex, difficult process, and you rightfully have concerns over what will happen to your business. Not only do you have the right to pursue a strong post-divorce financial future, you also have the right to protect your company-related assets and earnings. When there is much at stake, you would be wise to secure support and guidance as early as possible in the divorce process.