Cooper, Tanis & Armas, P.C.
Let us begin helping you today 720-399-0421

How divorce affects a business

Assets a person owned before a marriage typically aren't considered joint property and subject to division in a subsequent divorce, but a spouse might be entitled to a portion of assets like a business if it was developed after a marriage. Dividing property is often difficult for those in Colorado and other states, but there is some information that entrepreneurs might find useful when getting married or going through a divorce.

Colorado follows equitable distribution laws, which means marital property will be divided in a divorce in a manner that the court deems to be fair. This might not be an equal split and would vary based on the situation. If a partner contributed to a business that the other party owned, he or she may be entitled to a portion of the business. However, a judge would likely assign a value that a spouse is entitled to instead of actually taking anything out of the business.

A spouse is likely to get some value for business contributions if the other partner owns a business outright and the spouse is involved in the business. If a spouse is employed at the other partner's business when divorcing, both parties would need to talk about what will happen as terminating a spouse due to a divorce could lead to other legal problems in the future.

To avoid the court process and come up with a division of marital property that both parties agree on, other forms of dissolving a marriage like negotiation or mediation may be useful. A family law attorney can often assist a divorcing spouse in determining which method would be best to pursue.

No Comments

Leave a comment
Comment Information

Confidential Case Evaluation. Contact Us Today.

Email us for a response

Fill out the form and we’ll be in touch with you shortly, or call us directly at 720-399-0421.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Cooper, Tanis & Armas, P.C.
42 Garden Center
Broomfield, CO 80020