If you own a restaurant, retail store, tech start-up, or another type of business, getting divorced can be especially complicated. As you navigate the emotional and personal challenges of ending your marriage, you will also need to consider the legal and financial implications of divorce on your business. In this blog, we will describe the steps you should take to protect your business when getting divorced. However, each case is different, and business owners are encouraged to work with an experienced divorce lawyer to ensure their legal and financial interests are protected.
Understand the Value of Your Business
One of the first steps you should take during a divorce involving business assets is to get an accurate and comprehensive appraisal of your company. Whether you own a small business you run out of your own home, or a large corporation, it is only possible to properly account for the business’s value during divorce with an accurate valuation. Work with a professional business appraiser to develop a thorough report of your business’s assets, liabilities, and current value.
Know Your Rights and Obligations Regarding Ownership
Illinois classifies most property acquired during the marriage as marital property. Unless your business is kept separate from the marital estate through a prenuptial or postnuptial agreement, it is likely that part or all your business is marital property. This means that your spouse is entitled to a portion of the company’s value. If you keep the company, you may be required to compensate him or her for his or her share of the business.
Document Everything and Keep Accurate Records
Throughout the process of divorce, it is essential to keep accurate records and detailed documentation of all income, expenses, and transactions related to your business. Keep records of your own financial accounts as well. Financial matters during divorce can become extremely complicated, and it is important to keep everything straight and understand what you own and what you owe.
Work With a Lawyer Experienced In Business Ownership Issues During Divorce
Divorce is an emotional time, and managing the legal, financial, and personal complexities of divorce on your own can be overwhelming. Working with a lawyer who understands the unique challenges facing business owners during divorce can help ensure that your rights and interests are protected. Your lawyer will be able to advise you on the best strategies for protecting your business and obtaining a favorable outcome.