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Colorado Springs Family Lawyer: Three Asset-Protection Strategies for Business Owners

Tuesday, 22 June 2010

blog-logoGetting a divorce shouldn’t mean you put your business interests in jeopardy, but some Colorado Springs area couples not prepared for the financial damages of a property settlement.  If you have complex property, such as a family business, a divorce can become very complicated and financially painful. 

In a Colorado divorce, one way to ensure your business assets are protected is to ask a Colorado Springs family lawyer for advice.  Basically, there are three proven strategies that can help you protect your business financial interests during the equitable division of property.

1) Include the proper protective language in all of your businesses’ operating agreements. 
Regardless of how your business is structured, it may be wise to consider adding language to your operating agreements that will protect the financial interests of your business from the fallout of a divorce settlement.  Another possibility would be to allow shareholders and/or partners in the business the “first right of refusal” for purchasing a partners’ share of the business, provided it is put up for sale in a divorce settlement.

 

2) Be sure to take a salary from your business that matches your efforts
Many business owners insist on only a modest salary so they can reinvest their profits in the business.  However, if you do not earn much money for the household from your business, then a spouse can reasonably argue that they are entitled to a larger share of the business.  Taking a salary that is proportionate with your efforts may prevent this from happening.

3) Limit your spouse from becoming involved in the business

If your spouse is an active participant in the business, they may be awarded a larger share of the business in a marital property settlement.  In order to protect business property in a divorce, it makes sense to limit their participation in the business.

Any time the assets from a business become a part of your divorce settlement, you will need a qualified attorney to represent your interests.  An experienced Colorado Springs family lawyer can help protect these assets.

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