When Colorado couples divorce, most often they have to consider the division of personal property and child custody if any children are involved. However, some couples who operate a business together may also have to navigate the separation of that business, or even determine how they will continue to run it together. A recent article gave insight on the issues around asset valuation and how to handle a co-owned business after a divorce.
Experts first recommend something that is important in all facets of a divorce -- compromise. Both partners may wish to focus on maintaining the business and place it ahead of any personal agenda either of them may have. The best way to do this is often to ask a third party to get involved. An appraiser can determine the value of the business fairly and will not side with either person. This will make it easier for the partners to divide the business properly so that everyone's best interests are served, or it can serve as incentive for the two business partners to work together.
As with any issue that may surround a business, knowing any potential legal ramifications is important. Laws in certain states may place value on parts of the business that other states may not. It may be helpful for both partners to be sure they fully understand all of the applicable laws in their specific state as they make decisions on how to run the business in the future. This may involve the two business owners deciding on new positions and responsibilities within their company. It may even mean that one person decides to surrender their position so that the company can flourish.
Divorce often requires honesty from all parties involved, whether or not there is a shared business in the relationship. The two former spouses may have personal feelings that could interfere with the progression of the company. Here in Colorado, involving other professionals who do not have a personal interest in the business for asset valuation may be the best way to ensure that everyone is treated with fairness.
Source: Huffington Post, Love Is Risky Business: 5 Tips to Legally Protect Your Company & Assets, Lisa Honey, Feb. 11, 2014