When Colorado business owners go through a divorce, one of their primary concerns is limiting the impact that this process will have on their company. If you own a business, you know how hard you have to work to start and build a business to the point where it is successful. The potential of losing the business or important assets can be a daunting prospect.
In many cases, a family owned business is a marital asset, which means it is eligible for division in a divorce. One of the most important aspects of fairly dividing this type of asset is properly valuing the company. Whether you want to make sure you keep everything intact or that you get your fair share of this marital asset, it can help to learn about what intangible factors can impact the overall value of your business.
Intangible factors matter
There are several intangible things that can impact the overall value of a company. When attempting to come to an accurate amount that represents how much your business is worth, it is important to take the following things into consideration:
- Contracts – It can prove beneficial to take a careful look at any contracts a business has and to determine the future projected value of these relationships, including ongoing but incomplete projects.
- Trademarks and branding – Recognition is an important aspect of a business’s value, and a large part of this is the branding you’ve established. Your trademarked intellectual property and products are also valuable.
- Proprietary information – Your processes, client lists and secret formulas are what set you apart and give you a competitive edge. These things have a monetary value.
The intangible things are what truly make your business what it is, and you will not want overlook them when determining an accurate value for your company. This is an important step in fairly dividing marital assets or negotiating a reasonable settlement.
The future of your business
It is in your best interests to secure final property division terms that allow for the continued success and operation of your small business. When it comes to determining an accurate value for your company or making the best choices for your business, you may find it helpful to speak with an experienced attorney first.