4 Ways You Can Protect Your Business During an Illinois Divorce

 Posted on November 08, 2018 in Family Law

If you are a business owner, your business is most likely one of the most expensive assets that you own. Deciding who gets to keep the house is one thing, but a business is a whole other creature that can be difficult to divide when you are getting divorce.

Your specific circumstances will determine how much of the business your ex is entitled to, but in some cases, he or she may be entitled to as much as half of the business. While a prenuptial agreement is the best way to ensure your business is protected in the event you divorce, not everyone gets one. Here are four ways you can protect your business during a divorce:

1. Get a Postnuptial Agreement

If you dropped the ball and did not have a prenuptial agreement in place when you got married, do not fret - you can still get a postnuptial agreement. Typically, a postnuptial agreement in Illinois has the same type of clauses and information about what would happen in the event of a divorce, you are just signing it after you are married, rather than before. But beware, if you try to enter into a postnuptial agreement after you have already made the decision to get divorced, your agreement may not be upheld in court.

2. Make Sure You Get a Fair Valuation

You must get a business valuation if you are a business owner getting divorced. It is important to have a fair and accurate valuation done because that valuation will be relied on when a court decides how the community property will be split. Some parties opt to use a court-appointed evaluator. In these circumstances, it may also be advisable to also enlist an outside valuator to review the initial the valuation.

3. Negotiate With Other Assets

If your ex is entitled to part of the business, try negotiating with your ex using other assets in the community. These assets may include the house, the cars, furniture items, retirement accounts and other real estate. If your ex is willing to give up part of the business in exchange for those assets, it is a win-win situation.

4. Hire an Experienced DuPage County Divorce Attorney

While it is a good idea for most people to hire a lawyer when they are getting divorced, divorcing couples who own a business together need to look for a skilled Hinsdale, IL property division lawyer who is experienced in high net worth divorces, specifically those in which businesses are involved. The Law Office of Martoccio & Martoccio can help you with all of your divorce needs, including business valuations and divisions. Your business is one of your most valuable assets - do not let it get destroyed because of your divorce. Call our office today at 630-920-8855 to set up a consultation.

Sources:

https://www.entrepreneur.com/article/220124

https://www.inc.com/guides/2010/05/protecting-your-business-from-divorce.html

https://www.nfib.com/content/resources/legal/a-small-business-owners-guide-to-divorce/