The answer to the safety of your small business depends on your definition of safe. A court deeming your small business as marital property in a divorce could see it being split between you and your spouse. The good news is that there are steps you can take to protect your business during and after your divorce.
When choosing a divorce attorney, it is important to select someone with experience handling divorces involving small businesses. You should also choose an attorney with whom you feel comfortable and who you trust to represent your interests.
Is My Business Considered Marital Property?
All property gained while married in Illinois is considered marital property, no matter which spouse’s name it is in. This includes businesses. Some exceptions to this rule do exist:
- If you owned the business before you got married
- If you received the business as a gift or inheritance
Contributions made to the business by either spouse constitute a significant factor in whether or not it is a marital asset. These contributions can be either financial or non-financial. An example would be if one spouse decided to stay home to care for the children while the other ran the business. The stay-at-home spouse’s contributions could be considered in the divorce settlement.
How Can I Protect My Business During a Divorce?
Your business could be divided between you and your spouse if it is considered marital property. There are steps you can take to protect your business, such as:
- Talk to an experienced divorce attorney
- Get your business valued
- Consider a prenuptial or postnuptial agreement
What Happens to My Business in a Divorce?
Illinois is an equitable distribution state. What this means is that if your business is considered marital property, the court will divide it equitably between both spouses. The court could:
- Order the sale of the business and have it split between the spouses
- Order one spouse to buy out the other spouse’s interest in the business
- Order both spouses to co-own the business after finalizing the divorce
The court considers many factors when deciding on dividing a business, including:
- The length of your marriage
- The business value
- Each spouse’s contributions to the business
- The needs of any children involved in the divorce
Contact a DuPage County, IL Divorce Lawyer
As a small business owner going through a divorce in Illinois, it is important to understand your rights and options. By working with an exceptional Hinsdale, IL divorce attorney, you can protect your business interests and ensure that your business continues to thrive after the divorce. Contact the [[title]] for a free consultation at [[phone]] and take the appropriate steps to safeguard your small business.