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What to do with a business in your divorce

Many issues can arise when business owners end up getting divorced.

Many business owners have found themselves going through a divorce. Unfortunately, they may not have had any plans in place for what would happen to the business if a divorce occurred, and they lost substantial assets because of this lack of preparation.

One of the ways that business owners can protect the business from divorce is to obtain a prenuptial agreement. This will allow the individuals to prevent the business from being subject to the equitable division of property during the divorce process. Each spouse should consult with an attorney at this time to ensure that the agreement will hold up if the relationship ends.

But, what happens if the couple does not have a prenuptial agreement and one of the spouses owns a business? These situations can become quite complex, and there will be many things that will need to be done at this time to ensure that a fair evaluation of the property is made.

Often, the business will be the centerpiece of the property division proceedings. In many cases, this will require the parties to consult with financial professionals to get a thorough appraisal of the business and its assets. This can then be a starting point to determine the best possible options for moving forward.

The ownership of the business may complicate the division of this property. If one of the spouses owns the business with other partners, there will have to be some discussion about the long-term health of the entity. The divorcing partner may need to sell his or her share to the others in order to be able to reach an agreement. Some companies have carefully discussed what should happen in these situations in their bylaws, which will ensure that the business is able to continue despite the loss of a key member.

If the business is owned by the spouses together, they will need to consider what they want to happen with the entity. Do they want to continue their business relationship? Do they want to still own the business together, with one of the spouses continuing as a silent partner? Does one spouse want to sell his or her share to the other? The answers to these questions will determine how the spouses will need to structure their property division agreements.

If you own a business and find yourself going through a divorce, you need to speak to an experienced attorney as soon as possible. Your attorney will be able to work with you to devise a plan that helps you protect your interests. This ensures that you will have a clear understanding of all of the options that are available to you, and it can help you make the right decisions for your future.

Contact Our Illinois Divorce & Custody Law Firm Today

You will find our attorneys to be flexible, responsive, and ready to begin providing exceptional representation to protect your rights and your best interests immediately. Call our law office now at 312-624-7656 to schedule a consultation about your family law needs at no initial charge.

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