How divorce can impact your business

| Jul 7, 2021 | Divorce |

When a Colorado business owner gets divorced, it is hardly business as usual. Not only are there interruptions to daily operations, but control of the company itself could be at issue. You should work as hard as you can to minimize the disruption, but that is not always possible.

Divorce can put your entire business at risk

The biggest threat to the business is that it could be divided among owners who cannot agree. The usual rule is that both spouses would have some legal claim to part of the business. Since it was operated over the course of the marriage, it would be considered part of the marital estate and subject to division. The spouse who owned the business before the marriage risks losing a substantial part of it in the divorce. This could be avoided with a prenuptial agreement if both spouses are willing to sign one. The agreement would specify how the business is to be divided and run in the event of divorce.

The stress of divorce can slow your business

Other impacts could include the distraction that dealing with the legal process of a divorce could impose. Divorce is a difficult process. If you try to handle the details of it on your own, it may take over your life. This could affect your business and the rest of your professional life. It is even worse if you find yourself in the middle of a contested divorce.

You don’t want to be in this all alone or leave anything to chance. A divorce attorney may help negotiate a prenuptial agreement to protect your business. They might also help you negotiate a marital separation agreement that allows your business to operate and keeps you out of court. If litigation is necessary, they may be able to defend your legal interests in court.