If you have worked hard to start your own business, you have every right to want to protect the fruits of your labor. Even if you owned the company in your own name before you got married, your company’s assets or profits can easily become marital property in the absence of a legally binding agreement that says otherwise. People who were business owners before getting married and saw their businesses grow during their marriages have lost some of the increased value during divorce. You can use a prenuptial agreement to establish your company as your own separate property in case your marriage ends in divorce. A Naperville, IL prenuptial agreements attorney can draft a fair agreement that protects your company.
How One Spouse’s Business Becomes Marital Property
Under Illinois’s marital property laws, most assets gained during the marriage by either spouse are the property of the marriage. While your company itself might stay your separate property because you had it before you were married, any increase in your company’s value during the marriage might be considered marital property. This is because both spouses are said to contribute to each other’s careers and earning potential, even if that contribution is indirect.