Unfortunately, not all Illinois marriages are the happy unions most couples envision for themselves, and many choose to end their marriages. In addition to the emotional toll a divorce can have on a person, they may face financial burdens as well. This can be particularly true in the case of a high asset divorce. Luckily, there may be steps individuals can take to help protect important assets, such as a business.
When married couples share a business together, they will likely each have a stake in the business in the event of a divorce. However, negotiating full ownership of the business may be possible if one spouse is willing to sacrifice his or her claim on other assets, such as shared real estate or automobiles. Another option may be to agree to pay the other spouse's share of the business over a certain length of time. This will allow an individual to maintain control over the company while ensuring the other spouse receives his or her monetary share.
For those who are not yet married but still want to protect ownership of a business, signing a prenuptial agreement might be beneficial. This type of document can predetermine how to allocate assets and help to prevent the struggles of property division should a divorce ever take place. Another alternative may be to create a buy-sell agreement, which can define what happens to a business if ownership changes.
There are many aspects to consider for a business owner when a divorce in imminent. Additionally, there may be steps individuals could take before marriage to help safeguard their interests. Anyone who is facing a high asset divorce could consult an experienced Illinois divorce attorney to help determine the best course of action for his or her situation.
Source: tgdaily.com, "3 Ways to Protect Your Business from Divorce", Ian Reading, Accessed on Aug. 15, 2017