Handling Business Interests In Colorado Divorce
When Considering the Business Interests of Both or Either Spouse During a Colorado Divorce, the Court Must Take into Consideration the Following Factors:
- Cash value of business interests
- Vested and non-vested stock options
- Disposition of non-liquid partnership interests
- Short- and long-term cash flow
- Downturns in the business or in the national economy
- Business debts
- When one spouse works for the business but is not an owner, what is the value to the business of that spouse’s employment?
Methods Frequently Used to Determine the Value of a Business Include:
- Straight capitalization accounting
- Capitalization of excess earnings
- IRS variation of capitalized excess earnings
- Market value
- Buy/sell agreement method
Business Valuation Expert
In common practice, the best way to determine the value of a business is to seek the opinion of a business valuation expert. In complex situations or where the parties disagree on the value of the business, each spouse might decide to hire a separate valuation expert. It is then up to the Court to decide which opinion will form the basis of the Courts’ ruling on property division.
Valuation experts must take into consideration many factors in valuing a business. This process all too often becomes expensive and time-consuming, sometimes causing a delay in finalizing the divorce for many months or even years. An experienced Boulder divorce attorney from Ross Law Firm can help prevent this from happening to you.
A Skilled Divorce Attorney from Ross Law Firm Can Help
For many divorcing couples, the division of property can be a very difficult, prolonged process. This process can be even more complex when one or both spouses own a business. It is therefore vital to seek the advice of competent, knowledgeable legal counsel as early as possible in the divorce process. The experienced family law attorneys at Ross Law Firm can quickly and adroitly help you explore the options available to you. We can help take the sting out of the complicated, lengthy process of property division and business valuation. A divorce attorney at Ross Law Firm can help you prepare for mediation and, when necessary, for trial.