Will Getting Divorced Mean I Will Lose My Business?

 Posted on September 13,2023 in Illinois Divorce

Divorce is often a challenging and psychologically draining experience. A situation that can be particularly difficult is when a business owner is going through a divorce. Dividing complex assets like a business can bring profound anxiety to any business owner, as an important question lingers: Does getting a divorce mean I will lose my business? The good news is that getting a divorce does not guarantee you will lose your business. However, if you are a business owner getting divorced, it is essential to understand that various factors come into play when determining the fate of a business in divorce proceedings. 

If you are a business owner getting divorced, contact a lawyer to guide you through the divorce process and help you protect your business from the uncertainty of a divorce.  

Proving a Business as Separate Property

To protect your business from division, you must establish it as separate property. It may be considered separate property if you started your business before getting married or acquired it through inheritance or a prenuptial agreement. However, it is crucial to maintain clear records and documentation to prove the business’s separate status, as commingling assets or involving your spouse in the business can weaken the argument of the business being separate. 

Valuation and Options for Protecting Your Business

During a divorce, your business will be evaluated to determine its value. Seeking the assistance of a skilled business valuation professional is crucial to ensure an accurate assessment. Once the value is determined, you can explore various options to protect your business. These include buying out your spouse’s share, offsetting the value of other assets, or negotiating a settlement that allows you to retain ownership while providing fair compensation to your spouse.

Consider Mediation Methods

In Illinois, alternative dispute resolution, like mediation, is often encouraged during divorce proceedings. Mediation involves a neutral third party whose goal is to help you and your spouse find an agreement that is mutually agreeable. This method allows for more creative solutions and can help protect your business interests without the need for litigation. 

Contact a St. Charles Divorce Attorney

While the fate of your business during a divorce in Illinois cannot be certain, understanding the state’s laws and taking proactive steps can help protect your business interests. 

Establishing the business as separate property, accurate valuation, exploring protection options, and considering alternative dispute resolution methods can all contribute to a fair and favorable outcome for your business. Contact the skilled Kane County divorce lawyers with Weiler & Associates, Inc. for assistance during this crucial time. Call 630-331-9110 for a private consultation.