Illinois is an equitable distribution state, which means that your business could be subject to division in a divorce. This may have very real impacts on your company’s operations. You must take care to keep the business running smoothly no matter how bad the turmoil in your personal life gets.
Potential effects of divorce on your company
Divorce is stressful. Beyond the personal upheaval, there is uncertainty over your assets and how they will be split. There is a very real chance that you may need to pay your spouse for their legal share of the business. This could mean selling assets to raise the money. You may need to sell a stake in the company or take on a partner to buy out your spouse. In the meantime, you are balancing a legal process with the ongoing operation of your company. This may occupy your mind and keeps you from being fully productive at work.
Prenuptial agreements could protect your business
You may need to get creative in resolving the divorce in order to keep your company. This could mean remaining co-owners of the business with your former spouse or working out a long-term payment plan. Of course, the best way to prevent uncertainty from hurting your business is to have a prenuptial agreement. This will specify in advance what would happen to the business in the event of a divorce. A prenuptial agreement is helpful when you are bringing a business into the marriage. If you started the business after getting married, you could negotiate a postnuptial agreement when you are still on good terms with your spouse.
Divorce can be complex when you have intricate finances such as your own business. You may want to hire a family law attorney to look after your business interests in divorce. A legal professional might offer creative solutions to keep your case from going to court.
