Colorado business owners who are getting a divorce will be understandably concerned about how property division will be handled. The benefits of a successful business include accruing various properties such as a home, automobiles, collectibles, jewelry and more. Dividing them during the case can be worrisome.
Even in situations where the business is only moderately successful, people will be fearful as to what the future holds in terms of the divorce. This is not limited to the person who oversees the business. The spouse might have contributed to its establishment and growth and wants a fair outcome from their perspective. Under these circumstances, it is wise to know the law for property division.
Colorado strives for a fair division of property
In Colorado, the template for property division is based on equitable distribution. This differs from states like California that use community property and split the marital items in half. With equitable distribution, the court strives for fairness. This can impact how a business is divided.
With property division, the court will assess various factors when deciding on a fair outcome. That includes how much each side contributed to the acquisition of the property; the value of the property; the economic situation when the property is divided; and if property rose in value during the marriage.
Regarding a business, a person who ran it might expect to retain it as part of the divorce. However, the court will want to know the deeper facts such as the other spouse contributing to the training and education of the owning spouse so they could create and improve the business. If the non-owning spouse was a homemaker, that too could be viewed as contributory.
Professional help can be key to reaching a positive outcome with property division
Any family law case can be stressful with people wondering what will happen in the future, personally and financially. This is especially true if there is a business at stake. In these cases, it is essential to have assistance not just with divorce and property division but with how the business will be split.
Legal professionals who are experienced in a variety of areas of the law, including family law and business can help with achieving a positive outcome regardless of whether it is the person who had the business before the marriage and built it during the marriage or the spouse who contributed by being supportive in a variety of ways. Calling for advice is vital from the beginning.