How to Protect Your Business Interests in an Illinois Divorce

 Posted on April 14, 2022 in Divorce

When you or your spouse own or have an interest in a business, these holdings could become a major source of contention during divorce. Often, each spouse will have their own ideas about the valuation of the business and how it should be divided. Over the past two decades, Calabrese Associates, P.C. has helped numerous business owners protect their rights and investments in even the most complex circumstances. Here are some of the issues you may encounter:

Business Valuation

The first step after determining which business holdings may be considered marital property is to conduct a thorough and detailed business valuation. Some key issues that may arise are how much each of you has contributed to the business, either directly or indirectly, or how much you have maintained the home during any extended business trips the other partner may have taken.

Professional Practice or Closely Held Business

Dividing a professional practice such as a medical or legal office, or a family-owned business, can present unique challenges to asset division—whether or not your spouse participates in operating it. A full and accurate accounting is the first step, but creative negotiation and professional assistance will go a long way toward helping you preserve your practice and reach an equitable settlement.

Dividing a Partnership with Others

As difficult as a divorce can be on a long-held business, it becomes even more complex when there are other owners involved. First, what part of the business is considered marital property, requiring equitable division? Second, can you strike a creative property settlement to offset the value of your interest and keep your partnership intact? This requires the skill and experience of a knowledgeable attorney.

How a Prenuptial or Postnuptial Agreement Can Help

Whether you are already in business with your fiancé or you have other outside associates, having a comprehensive agreement in place spelling out the details of your business ownership can save a lot of grief and expense down the road. If you have not already executed a prenuptial agreement before your marriage, do not fail to delineate your ownership terms in a postnup afterward. It can prevent a great deal of uncertainty should divorce ever become a factor in your business relationships.

Contact an Experienced DuPage County Divorce Attorney

If you and your spouse own a business together, the decision to divorce can present a variety of complex issues. Whether you end up continuing to work together or not, we can help you mitigate many of the most difficult effects, and strike an equitable distribution of your assets, both personal and business-related. Call Calabrese Associates, P.C. today at 630-393-3111 to schedule a confidential 90-minute introductory meeting with a knowledgeable Naperville business and divorce lawyer.

Source:

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?ActID=2086&SeqStart=3900000&SeqEnd=5400000