If you’re a business owner in Illinois with a fiancé, the protection of your business might have popped up into your mind at least once during your time with your soon-to-be spouse. It’s sensible to worry about the future of your own finances and the life of your business. The following includes some measures that you can take to reduce risk to your business if your marriage should end in divorce.
A prenuptial agreement is a legal document that is formed by the business owner and his or her attorney regarding the handling of their business in the event of a divorce. This is extremely important as many states across the country seek to divide all assets, including a business, 50/50. This means that if there is no prenup signed prior to the marriage, you may need to hand over 50% of your company to your ex-spouse. A few of the items that you are going to want to include are the valuation of your business prior to the marriage, marital funds being used in the business and how you will determine the valuation of the business after the divorce.
If there is any reason why you can’t create a prenup before the marriage, you are not out of options. You also have what is called a postnuptial agreement. This can be used when a business has emerged during the marriage or when your own business valuation has increased. By coming to an agreement with your spouse, you both are placed in a better position in the event that the marriage does not work. A postnup can even give you a second chance at covering issues that you may have missed during your prenup. A family law attorney may guide you in crafting a postnup agreement.
Compiling a financial document like a prenup is often a daunting task to take on. This is why it is so important to ensure that your document adheres to state law and offers the right protection. An experienced legal team may help protect the interest of yourself and your business.