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Safeguarding a business against the effects of divorce

| Jun 2, 2020 | Divorce |

When a marriage ends, many lives are affected in many ways. Divorce can also have an impact on Illinois residents who co-own or own businesses. There are several ways divorce can affect a business, so putting some protections in place as a precaution — perhaps at the beginning of a marriage — may minimize the impact divorce could have on an entrepreneurial level.

Divorce could be a distraction for the employees of a business as well as disrupt its day-to-day operations since the owner is likely spending time away dealing with issues pertaining to the divorce. If the business is co-owned by an individual going through a divorce, it could impact any partners if the business is on the table as an asset. If the spouses are equal owners of a business, they could also agree to dissolve the business, which would impact employees and/or shareholders. 

The most logical and effective way of thwarting possible problems with a business in a divorce situation is to have a prenuptial agreement in place before the marriage or a postnuptial agreement afterwards. Both these documents can list specifics of what should happen in the event of the divorce of a business owner. Smart planning can offset the negative impacts a divorce could have on a business.  

These sorts of issues should be discussed with an experienced Illinois divorce attorney. It is better to be prepared for events that may not happen, especially when the life of a business might be on the line. A lawyer can offer suggestions and ideas on how to add safeguards to protect business interests in case of divorce.