Divorce in Illinois can be difficult at any stage of a person’s life. However, the complexity of the process heightens when a business is involved in that dispute. Understandably, people want to know the impact of a divorce on their business now and in the future. The following includes information regarding how your divorce may change the course of your business and how you may be able to protect it before a divorce even occurs.
The divorce process is a messy one, even when your ex-spouse agrees not to contest the dissolution of the marriage. The fact is that there may be a few claims regarding your assets, which may include anything that is considered marital property such as savings accounts, businesses or stocks. A large number of states, such as Texas, will implement community property law, which is a split of the assets right down the middle. However, in Illinois, the courts would ultimately determine the division of assets.
When business assets have to be divided, both individuals may remain with the company. This can cause serious tension and issues with the business’s day-to-day operations. The issue is only taken care of if one person decides to sell their portion of the company or buy out the other person’s shares.
How to protect your business
Possibly the best way to protect your business is to have your spouse sign a prenuptial agreement. Entering a prenuptial provides you with the security that your business needs to continue to run as usual, even during a divorce. You can also protect yourself by avoiding using your home as collateral to receive funds to start a business.
The divorce process can be quite complex, especially when a business is involved. An experienced business attorney may be able to help you navigate the divorce process and avoid damaging your business at the same time.