When marriages involving older couples end, the stakes are often higher, especially when business assets are involved. Commonly referred to as "gray divorce," these divorces typically involve couples aged 50 or older and can come with unique financial challenges.
At Pesch Law Office PC, we understand the complications involved in high-asset gray divorces. Led by Susan Marie Pesch, our firm provides dependable legal support in Denver, Colorado, and the Denver Metropolitan area, including Golden, Weld County, Broomfield County, Boulder, Jefferson County, Highlands Ranch, Douglas County, Littleton, Arapahoe County, Columbine, and Boulder County.
With years of experience in family law, we bring focus, empathy, and tenacity to every divorce case she handles. Our firm understands the nuances of your gray divorce, especially when sensitive issues like business interests are at stake.
Let's explore how business assets are impacted during gray divorce, how Colorado law addresses these cases, and how you can protect what you’ve worked so hard to build.
Understanding Business Assets in a Gray Divorce
Whether it’s a family business, a small venture, or a partnership in a larger company, business assets complicate a divorce. Unlike personal property, business interests are often co-mingled with marital finances, and their separation can become contentious.
These challenges can be magnified by years of shared finances and significant monetary investments in the business. Some common concerns include determining whether a business is a marital property, how to value it accurately, and the potential impact of dividing it during the divorce settlement. If you or your spouse are business owners, you must answer these questions:
Did the business exist before your marriage? If so, how has it grown or changed during the marriage?
Was marital income used to fund or operate the business?
Does your spouse play an active role in the business?
Protecting business assets during a gray divorce requires careful planning. You need the guidance of an experienced attorney who understands the financial complications of dividing business interests.
How to Protect Your Business Assets
If you’re a business owner approaching or involved in a gray divorce, consider these proactive measures to protect your financial interests.
Document the business’s value and records: Clear financial documentation is critical. Gather financial statements, tax returns, partnership agreements, and profit-and-loss records. Make sure all relevant paperwork is up-to-date and presents your business’s standing accurately.
Consider an early business valuation: Consider having your business professionally valued before formal proceedings begin. This will give you a realistic understanding of what’s at stake. Early valuations also help you and your attorney prepare counter-strategies for potential disputes during negotiations.
Establish whether it’s separate or marital property: Work with your attorney to establish whether your business—or parts of it—can be considered separate property. If the company pre-dates your marriage, present financial documentation showing how its value has evolved before and after the marriage.
Negotiate or sell: Depending on your circumstances, it may be best to negotiate a buyout of your spouse’s share to maintain control of the business. Alternatively, some owners choose to sell their business during the divorce and split proceeds as part of the settlement. Each choice comes with implications for your financial future, requiring careful consideration.
Seek mediation where possible: Litigation isn’t the only path for divorce settlements. Mediation or collaborative divorce may allow both parties to come to an agreement regarding business asset division—with fewer costs and less animosity.
At Pesch Law Office PC, we prioritize helping clients make informed decisions based on their circumstances. Whether through negotiation or litigation, our team strives to defend your financial interests and protect the assets you’ve worked hard to build.
Colorado Laws Governing Business Assets in Divorce
Colorado is an "equitable distribution" state, meaning marital property is divided fairly but not necessarily equally during divorce proceedings. This category includes most assets acquired or grown during the marriage—even if one spouse is solely listed as the owner of a business.
Under Colorado Revised Statutes Section 14-10-113, the court has the discretion to divide property, including business assets, based on several factors:
The length of the marriage.
The contribution of each spouse to the preservation or growth of the business, including non-financial contributions like raising children or supporting the other spouse's career.
The economic circumstances of both spouses.
Separate property, such as businesses established or acquired before the marriage, may not be subject to division unless the value of the business increased significantly during the marriage. Any increase is considered marital property, and the spouse who grew the value may have to compensate their partner equitably.
Additionally, Colorado courts often require a professional valuation of the business to determine its fair market value. Whether through an appraisal, financial expert, or forensic accountant, this ensures that the division is based on accurate and impartial information.
Gray Divorce Attorney Serving Clients in Denver, Colorado
At Pesch Law Office PC, we help clients in Denver, Colorado, and the surrounding communities protect their rights and achieve fair outcomes in gray divorce cases. Attorney Susan Marie Pesch brings years of experience, deep understanding, and compassion to the complications of divorce, child custody, and other family law issues. She handles each case with a personalized approach, care, and dedication. Contact us today to schedule a consultation for your gray divorce case.
