There are multiple reasons that owning your own business is ideal. It allows you to be the boss and control your profits, employees and all other aspects of business. The first step in beginning a small business is a business plan. That means you have to know your product or service, your finances, and your ultimate goal. Unfortunately, if a prenuptial agreement, domestic asset protection trust or a partnership agreement isn’t part of that plan, you hard work could be in danger.
The first way that a divorce can impact a business is through the division of property during divorce. Illinois is an equitable distribution and business assets are held as marital property as well. The court is allowed to split these properties as they see fit based on factors like length of marriage, contributions of the spouse to the marriage, and the age, health, and income potential of that spouse.
Without a premarital agreement there are other ways to protect your small business. The first step is acquiring an accurate description of your business and its assets. This is achieved by getting a business valuation that reviews the history of the business, current economy, financial records and other factors that give a business a value. Getting a proper valuation from a credible appraiser will ensure that the business owner doesn’t pay too much for continued control of their business.
Don’t let all your hard work be torn apart because of a divorce. If you are going through a divorce, it is important to get the help you need. Contact an experienced divorce lawyer in Naperville to begin protecting your small business.