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What to do with your business after a divorce

When you and your spouse started your business together, you may never have imagined that a divorce would be the factor threatening the end of your business. If you are divorcing, your business partnership may also be coming to an end.

What are your options regarding your business?

Staying in business

The first question to consider is whether you want to keep the business going after your marriage ends. If you do, you and your spouse may be able to continue working together. This is likely to be difficult, especially if there are emotional ties or if one of you is feeling particularly bitter about the breakup. However, if you feel confident that you can separate your personal feelings from your professional conduct, this may be a good choice, at least temporarily.

Selling a share of the business

Another alternative for keeping the company going is to ask your spouse to sell his or her share. To begin this process, you and your spouse will have the business properly valuated. Once you reach an agreeable appraisal, you can buy out your spouse's share, provided he or she is willing to sell. Of course, this means you must have the capital to purchase the other half of the business, or you can negotiate by offering other assets in exchange for your spouse's interest in the company.

Let it go

The final option is to sell the business. When the transaction is complete, you and your spouse split the proceeds. You may be able to use this money to begin again with a new business. Additionally, you will have created a clean break that may allow you a more complete emotional recovery from the divorce.

Whichever plan you feel is best for you, ensuring your rights and best interests are protected along the way will be vital to your financial security after the divorce. Having a Colorado attorney by your side can provide you with confidence that you are making wise choices.

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