Divorce Lawyer for Business Owners in Illinois

630-891-2478

Divorce Lawyer in Illinois for Business Owners

When a couple divorces in Illinois, their debt and marital property – the property they have accumulated and shared during their marriage – is subject to property distribution. Depending on your jurisdiction, it is either split equally (community property states) or equitably (equitable distribution states). Sometimes, marital property includes a business that the couple started together or, alternatively, one spouse started either before or during the marriage and continued to grow during the marriage. The business, under these circumstances, will also likely become subject to property division unless you take steps to safeguard it.

At The Law Firm of Erin N Birt PC (Birt Law), our divorce attorney in DuPage County understands the blood, sweat, and tears you put into starting and developing a business. We know you don't want to compromise that hard work in any shape or form. There are steps you can take, and our divorce lawyer will explain how to protect your business during a marriage or during a divorce. Call us at (630) 891-2478 to set up a consultation & planning meeting today.

How Will a Divorce Affect My Business in Illinois?

A divorce can affect every aspect of your life, including your business. How your business is affected will depend on a number of factors, including the law of the state that has jurisdiction. 

Some states are community property states which means that you may either have to: 

  1. split the business with your spouse, or 
  2. give your spouse other compensation equal to half of the value of the business. 

Other states, such as Illinois, use equitable distribution when dividing property. In these states, property is divided equitably or fairly between the parties. This may or may not be half of the business. Even so, it is likely you will be expected to give up at least part of the business, or its value, to your spouse. 

Following are some other factors that must be considered regardless of whether you live in a community property state or equitable distribution state.

Who Owns the Business

Did you or your spouse inherit the business from family? Is it clear that only one spouse supported and worked at the business? These are both considerations that will help determine how a business will be divided in a divorce. 

When Was the Business Started

If the business was formed prior to marriage, there are states that will maintain that it is premarital property and therefore not subject it to division. Also consider that in some states even if the business was started before marriage by one spouse, if the other spouse contributes to the business after marriage, it may be considered marital property, and therefore subject to being divided between the parties.  

When a business was started during the marriage, it will most likely be considered marital property and therefore subject to division under the rules of the state with jurisdiction.

Ways to Proactively Protect Your Business in Illinois

Fortunately, there are ways to protect your business so that you do not lose it, or part of it, in divorce proceedings. The best way to approach business protection depends on whether or not you are contemplating marriage and want to protect your interests, or if you are already married and fear a future divorce may harm your business. 

Prenuptial & Postnuptial Agreements

While no one wants to go into a marriage contemplating a divorce, it really is in your best interest to plan for the “what ifs” when you have a successful business you need to protect. A prenuptial agreement will help you do just that. It is an agreement made by two engaged parties wherein they address how assets will be divided in case of divorce. You are able to state in this agreement whether the business is even considered marital property and, therefore, whether it would be subject to division. 

A postnuptial agreement operates much like a prenuptial agreement, with the only difference being that it is entered into after marriage rather than before it. 

An Agreement to Buy/Sell

A buy/sell agreement is a way to establish how your spouse's interest in the business would be determined in case of divorce. You can also specify the amount of a cash award the spouse would receive for their share of the business in the event of a divorce. This type of agreement ensures that you will be able to keep your business. 

Ways to Protect Your Business During a Divorce in Illinois

If you have no contract, whether it's a prenup or an agreement to buy/sell, you can still take measures to protect the business. 

  1. Establish yourself as the sole owner of the business. Organizing documents should specify that the business is not transferable in the event of a divorce. To note, you may still need to provide a cash award to the non-titled spouse at the time of divorce.
  2. Keep your records. Even things like office furniture and office rent should not be paid with marital assets and maintaining records to clarify this is important.
  3. Separate finances. You should not mix business and personal expenses, and by not doing so, you can show that the business is separate. The opposite is true if you do commingle funds.
  4. Spouse as an employee. If your spouse worked at all, even if very minor, keep documents proving that the spouse was paid for their services. 

Generally, you want to maintain clear and thorough records of just about everything related to your business. 

Keep Your Business Safe: Get a Divorce Lawyer in DuPage County

Even with any of the safeguards in place, a non-titled spouse may still pose a challenge to your business. They may try to inflate their contributions or obtain an appraisal that overvalues the business. The latter, at a minimum, is why having a divorce lawyer who is resourceful and knowledgeable is key to countering these tactics. 

At The Law Firm of Erin N Birt PC (Birt Law), our Illinois divorce attorney for business owners will provide you with all your legal options and help you keep your business intact. Contact us at (630) 891-2478 to schedule a consultation & planning meeting today. With the right lawyer, you can walk away from your marriage with your livelihood protected and your hard work secured.

Our Attorneys

  • Erin Birt

    Since 2003, Erin N. Birt, J.D., CADC has focused her practice on pa...

  • Tyler Birt

    Since 2007, Tyler Birt has been a legal assistant and bookkeeper fo...

  • Karen Hansel

    As Administrative Assistant at Birt Law, Karen’s involvement in dai...

Recent Case Results

  • Wife desired to have a doctorate in mental health services and relied heavily on her husband to care for their young children while she pursued her career goals. Our client reported that she lost focus on their relationship and likely started to date a fellow student. He did not want to make an issue of the new significant other but he had concerns about having a supportive co-parent and was stressed out about the financial burden of his wife's education, growing children, and increasing extracurricular expenses. Read On

  • Our client was in a very difficult marriage and she was wondering if divorce was the right choice for her and her children. She spent countless hours online trying to research what was best for her and her children. She quickly became overwhelmed with all of the options for parenting time and parenting schedules and tried to turn to family and friends for advice but they were always too busy or minimized her challenges. Read On

  • Our client was an executive at a local corporation and she balanced working full time and raising two children well. Her spouse, however, did not participate much in the rearing of their children and would often isolate himself in the basement rather than spend time with the children or family. The children were struggling with anxiety and issues at school and their father seemed to just check out. The father also worked but he appeared too busy or disinterested to care for the children. To stop the downward trend, our client hired our firm to proactively address the looming divorce. Read On

Our Services

We help clients successfully and peacefully start a new chapter in their lives.

We offer in-person and remote meetings with clients.  Now more than ever is the best time to have a divorce attorney to navigate court restrictions, reopenings, and backlog of cases. 

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Contact Us Today

Birt Law is committed to answering your questions about Family Law and Mediation issues. We'll gladly discuss your case with you at your convenience. Contact us today to schedule an appointment.

The Law Firm of Erin N. Birt, P.C.
2100 Manchester Rd, #954
Wheaton, IL 60187
630-891-2478
630-597-2231 (fax)

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