Divorce is a complex and emotionally challenging process, made even more intricate when one or both spouses are business owners. In Colorado Springs, where entrepreneurship thrives, protecting business interests during divorce proceedings is paramount. At Boal Law, our experienced divorce attorney understands the intricacies involved and strategies for safeguarding your business assets, navigating valuation and division, and minimizing disruption to your business operations amidst a divorce.

Business Ownership Laws in Colorado

Colorado law recognizes two types of property: marital property, acquired during the marriage, and separate property, acquired before the marriage or through inheritance or gift during the marriage.1 While separate property generally remains with the spouse who owns it, marital property—including businesses started or operated during the marriage—is subject to equitable division upon divorce.

Valuation of Business Assets

Accurately valuing business assets is essential for equitable distribution during divorce proceedings. Colorado courts may consider various valuation methods, including income-based approaches, asset-based approaches, and market-based approaches.2 Hiring a qualified business valuation expert can help ensure a fair and comprehensive assessment of your business’s worth.

Dividing Business Assets

When it comes to dividing business assets in divorce, couples have several options. They may choose to sell the business and split the proceeds, buy out the other spouse’s share of the business, or continue co-ownership under a co-ownership agreement.3 Collaborative negotiations or mediation can often facilitate an amicable resolution tailored to both parties’ needs and interests.

Protecting Business Interests

To safeguard your business interests during divorce, consider implementing the following measures:

Pre-nuptial or post-nuptial agreements: Clearly delineate each spouse’s rights and responsibilities regarding business ownership and asset division in the event of divorce.

Corporate structure: Establishing a robust corporate structure, such as a limited liability company (LLC) or corporation, can help shield business assets from personal liability and simplify asset division during divorce.

Documentation: Maintain thorough and accurate records of business finances, transactions, and ownership interests to support valuation and division negotiations.

Non-compete agreements: Include non-compete clauses in employment contracts to prevent the other spouse from competing against the business or soliciting clients or employees post-divorce.

Minimizing Disruption to Operations

Divorce can create significant disruptions to business operations if not managed carefully. To minimize the impact on your business, consider the following strategies:

Maintain open communication: Keep key employees, clients, and stakeholders informed about the divorce process and reassure them of the business’s continued stability and commitment to excellence.

Delegate responsibilities: Delegate tasks and responsibilities to trusted employees or partners to ensure uninterrupted business operations during periods of personal upheaval.

Seek professional support: Enlist the assistance of legal, financial, and business advisors who specialize in divorce and business matters to provide expert guidance and support throughout the process.

Don’t forget taxes: Understand the tax implications of property transfers incident to divorce, including transfers of business interests between spouses.

Navigating divorce while protecting your business interests requires careful planning, strategic foresight, and expert guidance. By understanding state and federal laws regarding property division, valuing and dividing business assets, implementing protective measures, and minimizing disruptions to operations, business owners in Colorado Springs can navigate divorce proceedings with confidence. Consulting with a knowledgeable divorce attorney, such as Brian Boal, who specializes in business matters is essential to ensure the best possible outcome for both your personal and professional interests.


  1. Colorado Revised Statutes (C.R.S.) §14-10-113.
  2. C.R.S. §14-10-119.
  3. C.R.S. §7-90-801 et seq.
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