It’s been said that 1 in 2 marriages will fail. That makes those with their own business in Illinois and across the country very nervous at the prospect of having to split their business. Even if you don’t own a business but instead own a portion of one, the divorce process can greatly disrupt a business’s day-to-day functions. Thus the following includes detailed information regarding the impact of divorce on a business.
Financial implications of a divorce
The divorce process can be very complex and messy if you have disagreements with your ex-spouse. However, even in the event that you don’t have disagreements, you still need to deal with other issues such as child custody and any claims made on your assets. One of the things you’re going to have to deal with includes marital property. Marital property is everything that you earned during the duration of the marriage. There are nine states in the union that split assets down the middle. If you don’t live within those states, then the division of property will go through the courts.
Things you can do to protect your company
Although you can certainly fight for your assets in court, the fact is that it’s going to be very difficult to see a positive outcome. Instead, people are advised to have their spouse sign a prenup before their marriage is official. A prenup explains your demands and any stipulations regarding your business. It should be noted that even if you do marry before signing a prenup, you do have a postnuptial option. A postnuptial agreement is very similar to a prenup, and thus, you are able to still place some safeguards on your business.
For many reasons, going through a divorce can be a rather messy situation for everyone involved. Legal issues regarding your business can also be complex, so it is important to have a team of legal experts by your side.
