Unfortunately, over half of first time marriages end in divorce. Second and third marriages have an even higher likelihood of not lasting. The vast majority of assets become shared property during a marriage, which means these assets are subject to division if a divorce is to happen.
Many people joke about the idea of a prenuptial agreement, which is designed to protect assets, including businesses, from division should the marriage be dissolved. Hindsight is often 20/20 in this regard, and the best intentions can end up costing you your livelihood. What should you do if you are in a marriage that is rocky, and did not sign a prenuptial agreement?
The first thing you need to do in this situation is contact an experienced Colorado divorce attorney. In some cases, it may be possible to obtain a domestic or foreign asset protection trust. With these arrangements, the business is owned by the trust, protecting it from becoming an asset that can be divided.
Postnuptial agreements may also be a viable option. These are very much like a prenuptial agreement, the major difference being it is an agreement signed after a marriage has taken place. These agreements can be contested in court, but offer better protection than leaving your business or assets up to the mercy of the judge alone.
If you have a business that is your sole source of income and suspect a divorce may be on the horizon, seek legal advice immediately. It is much easier to exercise your options prior to the heated debates that often occur during a divorce proceeding.