Some people in Illinois put a great deal of time and effort into creating a business that will be successful. However, all of that effort could be put into jeopardy should the marriage end in a divorce without certain protections in place for the business. In fact, some claim that the sale of a business in another state, and subsequent court filings in response, are the result of the business owner’s divorce proceedings.
The business that is at the center of the dispute is Suitable Technologies, a company owned by a man going through divorce. Another company, Blue Ocean Robotics, announced in August that it would be buying Suitable Technologies. However, the owner’s estranged wife has recently filed papers asking for an injunction of the sale.
The woman claims in court papers that, in agreeing to the sale of the business, her estranged husband is breaching his fiduciary duties. She claims that she failed to have the business properly valued before agreeing to the sale. She further claims that the price agreed — $400,000 — is an “infinitesimal fraction” of the company’s actual value, which she argues is actually worth tens of millions of dollars. An attorney for Suitable Technologies argued that the woman initiated such proceedings to gain leverage in the divorce, but the court stated that the same could be said for the man’s decision to sell the company.
During a divorce, there are many factors that could impact property division, even if one person spent a great deal of time and effort on creating a business. Having a clear understanding of how assets will be divided — and taking measures to protect a business — can help potentially ease the animosity associated with the end of a marriage in Illinois or elsewhere in the country. An attorney with experience with family law can help people better understand their options.