Tips for the Divorcing Professional or Business Owner in Colorado
Professionals often have property settlement and support issues that include more complicated asset valuation including business assets, retirement accounts, long-term securities options, deferred compensation, and generational wealth. These Tips are designed to help these divorcing professionals.
Property Division Concerns for Divorcing ProfessionalsProperty issues that may arise when business owners or professionals divorce include the following::
o Valuation of a business interest
o High-earner child support
o Investment of marital assets into a business
o Contribution of stay-at-home parent to a spouse who obtained a professional degree
o Spousal support
o Division of retirement accounts
o Tax implications of divorce
o Bonus Income
o Income from Self Employment
Business Valuation Concerns in DivorceMany divorce clients are surprised to learn that a business established during the marriage is considered marital property to be divided during a divorce. There are a wide variety of business types which span varied organizational and accounting methodologies. As such, the most factually and legally complex area of divorce law is often valuation of a business. As a business owner facing divorce, there is the additional challenge of presenting and explaining these issues to a family law judge who may have very little of the accounting or financial theory background necessary to readily understand testimony of the business appraisers. Because Colorado law does not support any one hard and fast method of business valuation, it is important to obtain the help of experienced experts and counsel to help you present the most favorable view of your business for valuation purposes.
Child Support for Earners over $350,000In the state of Colorado, child support is determined in accordance with a set of child support guidelines. However, when the gross income of parents exceed the uppermost level of income for which the guidelines were set, Colorado judges have considerable discretion to deviate from the guidelines to award a higher or lower child support award. Since judges have such a high level of discretion, it is important to obtain legal counsel in family law matters involving high-income professionals. You can review the Colorado Revised Statutes online (Section 14-10-115) and review the Colorado child Support guidelines on the State Court website at www.courts.state.co.us for more information.