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A prenuptial agreement can help Colorado business owners

Small business owners who are unprepared legally are at risk of losing their businesses during divorce. Fortunately, there are several ways to eliminate the chance of losing a business due to a divorce. A Colorado small business owner can help ensure his or her business's continued success by separating business from personal or marital assets through a prenuptial agreement, postnuptial agreement or a business operating agreement.

A prenuptial agreement is a document that defines, before marriage, who will receive which assets should the marriage end in divorce. Those who own a business before marrying can protect their business interests by including their businesses in their prenuptial agreements. For those who start a business after marriage, a postnuptial agreement can designate the business as the property of only one spouse, thus protecting it from property division. 

Business operating agreements can also be put into place to ensure the protection of a business. These types of agreements often require partners to sign prenuptial agreements prior to marriage that include language relating the ownership of the business should a divorce happen in the future. By requiring all stakeholders to protect their interests in the event of future divorces, the future of the business itself can be protected.

Beware, though, that both a prenuptial agreement and a postnuptial agreement can be questioned in court, so it is imperative that the document be legally sound. Therefore, a Colorado small business owner may benefit from the assistance of a family law attorney to ensure that his or her agreement will hold up in front of a judge. Without this assurance, an ex-spouse, or even a partner's ex-spouse, could end up with an interest in or ownership of a business.

Source:, "How to protect your business in a divorce", Patrick Yeatts, March 25, 2015

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Brandon Ceglian

Brandon Ceglian's practice focus is family law, landlord-tenant law / real estate, civil litigation, criminal / DUI, and collections. View Attorney Profile

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J. Adam Beckman

Adam Beckman’s areas of focus are family law, adoptions and prenuptial agreements, and criminal law/DUI. View Attorney Profile


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Domenic Nicotra’s practices primarily in the areas of Landlord-Tenant, Family Law, Criminal, Protection Orders, and Civil Litigation. View Attorney Profile

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