What Will Happen to My Business After a Divorce?

There is a lot to consider in the face of divorce, especially if you are a business owner or own a business with your spouse. Filing for a divorce is complex enough, and business ownership adds another complicated layer to the divorce pie. With the help of a knowledgeable divorce attorney, you can protect your business interests and assets better. 

How Will My Business Be Divided in a Divorce?

The state of Illinois follows the concept of equitable distribution when it comes to dividing marital assets in a divorce. A business built and created during the marriage falls under the marital assets umbrella. Depending on your unique circumstances, valuing your business may be an essential step to knowing where you stand. 

The valuing process can also help you handle your finances better and remain knowledgeable about assets that will be distributed in your case. Business valuation can be a complicated process that takes various factors into account, including: 

• Business financial statements
• Earning potential
• Assets
• Liabilities
• Market conditions

Can I Protect My Business From a Divorce?

Prenuptial and postnuptial agreements are excellent ways to protect your business. Both agreements can provide clear guidelines for ownership and a potential buyout. You can minimize conflict and confusion by drafting these beforehand. But these agreements need some forethought and planning by both parties. Not to mention that these agreements are usually drafted way before divorce is even on the table. 

Here are several other options that can help: 

• Sell the business - If you and your spouse want to start fresh, then selling the business and splitting the profit may be a practical choice. This method gives both parties a fair share of the business's value.
• Buyout - One solution is for one spouse to buy out the other's share of the business. Once the business's fair market value is determined, you can negotiate a buyout agreement suitable for both parties. This tactic is especially appealing if you want to keep sole business ownership without your spouse's influence. 
• Consider Co-ownership - If both divorcing spouses are amicable, consider joint ownership. Despite your differences, your relationship may work better as business partners. This could be a great option if you have clear communication and similar business growth plans. 

Contact a Rolling Meadows, IL, Divorce Attorney

A divorce attorney with experience in high-asset divorce cases can provide the following: 

• Tailored guidance
• Negotiate agreements
• Navigate valuation processes
• Advocate for your best interest

You can take the first steps to proactively protect your business interests by speaking with a lawyer. Contact a skilled Arlington Heights, IL, divorce attorney with Law Offices of Donald J. Cosley. Please call 847-253-3100 for a free consultation.