On behalf of Cooper & Tanis, P.C. posted in high asset divorce on Monday, February 13, 2017.
When Colorado residents own or run a family business, they may have no intention of dividing up the associated assets if they ultimately end up getting a divorce. Because approximately 50 percent of marriages end up in a split, those who are considering marriage should take the steps to properly protect their family business.
One way a person can protect their family business is to draft a prenuptial agreement that includes the business. If it is done properly, this agreement can be completely enforceable by the judge should the couple get divorced. The agreement requires full disclosure from both individuals and can be voidable if one of the parties was forced to sign it under duress.
If former spouses started a business after getting married, they have a few options that will allow them to keep the business together. First, one person can buy out the other is the other person does not want to continue in the business. Second, the former spouses can potentially continue to work together as co-owners. While this does not always work out, there are some cases where they can still work well together.
When a person is going through a high asset divorce, dividing up property can be difficult. A family law attorney may assist with proving that certain assets, including a family business, were obtained prior to the marriage, making them separate property. If the business was obtained after the marriage, the attorney may negotiate with the other party so that the client can buy out the former spouse.