How Will Divorce Affect My Business In Colorado?

Colorado business owners who go through divorce may risk losing business assets during the property division process.

2012-12-06

December 06, 2012 (Press-News.org) How will divorce affect my business in Colorado?

For many people going through a divorce, one of the most difficult steps in the divorce process is dividing up shared property such as the family home, vehicles, savings accounts and other valuables. When one or both spouses are business owners, the property division process can become even more complicated and potentially volatile. Business owners in Colorado should be aware of how their business assets may be treated in the event of divorce and take steps to protect them in case such a situation should arise.

Division of property in Colorado

When a married couple goes through a divorce in Colorado, all of their assets are characterized as either marital or non-marital property. Generally speaking, marital property includes any assets earned or acquired by either spouse throughout the duration of the marriage. In contrast, non-marital property is anything that either spouse owned prior to the marriage. Certain exceptions apply, however -- for instance, a gift or inheritance to one spouse individually may be considered non-marital property even if it was received during the marriage.

The laws that govern the division of property during divorce vary from state to state. In Colorado, courts do not have jurisdiction to award non marital property but can consider this an economic factor which the courts can consider in dividing other property or in awarding spousal support. Under Colorado law, marital property can be divided equally or unequally, depending on what a judge deems to be "equitable," or fair. Factors that the court will consider when deciding how to divide marital property may include:
-The monetary and non-monetary contributions that each spouse made to the household during the marriage, including contributions as a homemaker
-The value of the marital property
-Each spouse's individual financial situation and earning capacity after divorce
-Each spouse's share of responsibility for child care and custody after divorce

Division of business assets

While some people may not think of a small business or solo practice as property, the truth is that businesses are treated just like other assets during the divorce process in Colorado, and owning a business may drastically affect the outcome of the property settlement.

As with other types of property, a primary issue for divorcing business owners is valuing the business. In Colorado, business valuation for divorce purposes includes both the value of the business at the time of divorce as well as the value of the future income for spousal support purposes.

The valuation process can be extremely complicated as Colorado has not adopted one clear method for business valuation in a divorce. As such, values can vary widely depending upon who is doing the valuation.

To help ensure that their business assets are protected in the event of divorce, Colorado business owners should speak with a lawyer who has experience representing business owners in divorce and property division cases. A knowledgeable attorney can help business owners understand their legal options and take steps to help protect their business assets if a divorce occurs.

Article provided by Lynn Landis-Brown, P.C.
Visit us at http://www.landislawoffice.com

ELSE PRESS RELEASES FROM THIS DATE:

Prenuptial And Postnuptial Agreements On The Rise

2012-12-06

Prenuptial and postnuptial agreements on the rise To love, honor, and keep all property separate? With divorce rates continuing to hover around 50 percent throughout the country, more and more couples are using contracts to outline what assets belong to which spouse. Some are using agreements set up prior to the wedding, called a prenuptial agreement, while others are outlining the terms after the wedding, called a postnuptial agreement. These contracts can help ease financial stress between couples by clearly outlining how assets will be split if the marriage fails. Although ...

Divorce And Insurance: Knowing How It Is Split Can Help Save Headaches

2012-12-06

Divorce and insurance: knowing how it is split can help save headaches Divorce is difficult for every couple. Couples must come to terms with the fact that a romantic relationship is ending while also dealing with how assets will be split. In addition to balancing these issues, couples should also keep in mind that their insurance will likely be impacted by the divorce. First and foremost, it is important to know that once a Petitioner for Marital Dissolution (a divorce) is filed in California, the party who filed it (the Petitioner) may not cancel or change the beneficiaries ...

Texas Lawmakers Try Again To Ban Texting While Driving

2012-12-06

Texas lawmakers try again to ban texting while driving If some Texas lawmakers have their way, texting while driving will soon become illegal in Texas. Former Texas House Speaker Tom Craddick recently filed legislation that would do just that. Texas lawmakers passed a similar ban on texting two years ago. However, Gov. Rick Perry vetoed the bill. Perry said that texting while driving "is reckless and irresponsible" but that he saw the bill as "a government effort to micromanage the behavior of adults." The proposed law is named in honor of Alex Brown ...

Common Mistakes Parents Make With Children After Divorce

2012-12-06

Common Mistakes Parents Make With Children After Divorce Divorce can be an emotional and difficult procedure, especially when children are involved. Unfortunately, because of this, and because people may not know what to look out for, sometimes mistakes are made along the way. Learning what mistakes parents often make after their divorce and child custody cases can help them recognize and avoid those mistakes and work toward the best possible outcome for their family. The Insight of Teachers Teachers are in a unique position to observe the effects of a divorce ...

Legal Obstacles for Indiana's Temporary Employees

2012-12-06

Legal obstacles for Indiana's temporary employees As the economy continues its slow recovery from the Great Recession, employers in Indiana and around the nation are relying more heavily than usual on temporary workers. While business is gradually improving for many employers, some are not yet willing to commit to taking on new fulltime employees, choosing to rely on contractors and temps instead. With the 2012 winter holidays fast approaching, Indiana's temporary and seasonal workforce is likely to grow even larger to accommodate the annual retail boom. And, in some ...

Health Insurance and Social Security After a Massachusetts Divorce

2012-12-06

Health Insurance and Social Security After a Massachusetts Divorce Divorce can bring a myriad of changes to a person's life. People trying to adjust to their new lives as singles may not realize all of the details to which they will have to attend as a result of divorce. For instance, they may not consider the impact that divorcecan have on health insurance eligibility and Social Security benefits. Health Insurance Options Massachusetts law requires insurance companies to allow ex-spouses to remain on employer-sponsored health insurance plans after divorce. If ...

Teens Most Vulnerable to Concussion, Study Finds

2012-12-06

Teens Most Vulnerable to Concussion, Study Finds People of all ages can suffer lasting consequences after concussions, but a recent study found that teenagers are more likely than other age groups to experience cognitive problems after head injuries. In a study that tested the thinking ability of 96 people an average of six months after sustaining a concussion, researchers at the University of Montreal found that teenagers suffered more cognitive impairment after concussions than both children and adults, who displayed similar deficits. The results were surprising ...

Judges Under Pressure To Eliminate Disability Claim Backlog

2012-12-06

Judges under pressure to eliminate disability claim backlog Contrary to popular opinion that the Social Security Administration has been struggling with an extraordinarily high caseload in recent years due to high unemployment numbers, the rise in applications is actually due to the fact that there are a growing number of baby boomers reaching their disability prone years and that more women have been working outside the home. The recent influx of applications has created a backlog of roughly 2 million applications, resulting in extremely long wait times for many ...

Despite Regulations, Many Surgeons Still Struggle With Fatigue

2012-12-06

Despite regulations, many surgeons still struggle with fatigue In an effort to reduce fatigue-related medical errors among notoriously overworked surgical residents, the Accreditation Council for Graduate Medical Education implemented new policies in 2003 that limit residents' on-duty hours. Surgical residents are now limited to 80 on-duty hours per week and must have a minimum break of 10 hours between shifts. However, recent studies on the effectiveness of these measures suggest that the issue is far from resolved. Researchers who studied the effects of fatigue ...

Houston Ripe For Startup Entrepreneurs

2012-12-06

Houston ripe for startup entrepreneurs In early November 2012, Houston was home to another Startup Weekend that draws aspiring entrepreneurs from a variety of professional backgrounds to brainstorm ideas for new business startups, mainly technologically oriented. Sponsored by the Seattle nonprofit of the same name, the weekend is an intense workshop wherein the best startup ideas as voted on by the attendees are developed by small groups into potentially viable business models. Local business leaders attend group presentations and provide valuable feedback, and a ...

LAST 30 PRESS RELEASES:

CMD-OPT model enables the discovery of a potent and selective RIPK2 inhibitor as preclinical candidate for the treatment of acute liver injury

Melatonin receptor 1a alleviates sleep fragmentation-aggravated testicular injury in T2DM by suppression of TAB1/TAK1 complex through FGFR1

Single-cell RNA sequencing reveals Shen-Bai-Jie-Du decoction retards colorectal tumorigenesis by regulating the TMEM131–TNF signaling pathway-mediated differentiation of immunosuppressive dendritic ce