How to Protect Your Business During a Divorce in Illinois

 Posted on March 13,2023 in Illinois Divorce

If you are a business owner going through a divorce, you are likely concerned about how your business will be affected. Fortunately, there are steps you can take to protect your business during a divorce in Illinois. Here is what you need to know:

Identify the Whether the Business is Marital or Non-Marital Property 

Non-marital property is property that is not subject to division in a divorce. It includes property that was acquired before the marriage, property that was gifted or inherited, and property that is identified as non-marital in a prenuptial agreement or postnuptial agreement. If you have documentation showing that you started the business before marriage and did not use marital assets to finance or maintain it, this can be used as evidence to establish that your business is non-marital property. However, if you did not keep good records, it can be more challenging to prove that your business is non-marital.

If you have a prenuptial agreement that specifically outlines that your business is non-marital property, that agreement will be used to establish that your business is exempt from division in a divorce.

Consider a Buyout Agreement if the Business is a Marital Asset 

A buyout agreement is a contract that allows one spouse to buy out the other spouse’s interest in the business. This can be an effective way to avoid having to divide the business between the parties. To negotiate a fair buyout agreement, you will need to determine the value of the business and agree on a fair price for the buyout. An experienced family law attorney can help you negotiate a favorable buyout agreement. They can also help you determine how the buyout will be financed and how the payments will be structured.

To protect your business during a divorce, it is essential to have a clear understanding of its value. A business valuation can help you determine the fair market value of your enterprise, which can be used to negotiate a settlement agreement.

Obtain an Accurate Business Valuation

To obtain a business valuation, you wll need to work with an experienced business valuation expert who understands the nuances of valuing a business in the context of a divorce. The expert should consider factors such as goodwill, intellectual property, and market trends when determining the value of your business. To safeguard your business during a divorce, it is essential to work with a well-versed family law lawyer who comprehends the intricacies of business division in divorce proceedings.

Work with an Experienced Business Law Attorney

An attorney can help you navigate the legal complexities of a divorce and develop a tailored strategy to protect your business. They can work with you to gather the necessary financial documents and other evidence to support your claim that your business is non-marital property. They can also assist with negotiating a favorable buyout agreement or settlement agreement.

Contact a Kane County Divorce Lawyer Today

Protecting your business during a divorce requires careful planning and execution. It is crucial to work with an experienced St. Charles family law attorney who understands the complexities of business division in divorce proceedings. Call Weiler & Associates, Inc. at 630-331-9110 today for a confidential consultation to discuss your options and protect your business.

Source: 

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm