Protecting your Business before a Divorce

 Posted on March 23, 2013 in Distribution of Assets

Starting a business is a very arduous task.  For a long time, there is no end to the struggles to bring services or goods to consumers and finding your marketplace.  Time and resources are spent to make a business a success and a divorce can tear it asunder.

A marriage is a contractual agreement that states that each spouse is entitled to jointly gained assets.  This is essentially the difference between separate property and marital property.  In some cases, a spouse can expect nearly half of a business after a divorce as determined by length of marriage, involvement in the business, and the spouse’s earning potential after a divorce.

If either spouse has spent their time creating a valuable asset such as a business, it is essential to know how to protect it, most likely through a prenuptial agreement or other business agreements.  A prenuptial agreement serves as an outline of the outcome of an unforeseen dissolution.  It will delineate the property and asset distribution and also for the protection of a business.  But like most contracts it needs to meet certain criteria to be considered valid by the divorce court.

The prenuptial agreement must be drafted in writing.  The agreement must be agreed to by both parties without the presence of fraud or coercion.  A good way to safeguard against a prenup being invalidated is to have both parties seek separate counsel.  Both lawyers will also ensure that all assets and properties are disclosed on the outset of the agreement and that the terms are not unconscionable to either party.  To protect the assets that you have before your marriage, contact an experienced family law attorney in Lombard.