Divorce is already challenging, but the stakes can become even higher when a business is involved. Many business owners fear that years of hard work could amount to nothing if their business is divided in a divorce settlement, potentially threatening their financial future. Whether or not a spouse can claim part of a business depends on whether it is classified as marital or separate property under state law. Understanding how business divisions work can help owners take proactive steps to protect their assets. An Illinois divorce attorney can provide strategic guidance about navigating this intricate process and working toward an appropriate outcome.
Is My Business Marital or Separate Property?
Illinois follows equitable distribution laws, which means that property is not automatically divided equally, but is instead divided fairly. Factors such as the length of the marriage, each spouse’s marital contributions, and each spouse’s financial circumstances are considered when making this determination. Whether a business will be divided depends on whether it is classified as marital property or separate property.