Starting a business and getting it up and running is no small endeavor. It takes an enormous amount of effort, commitment, and consistency to succeed in business ownership, and many different factors exist that constantly threaten the success of a business. Although many business owners are aware of the dangers of competitors, supply chain difficulties, and rising office rental prices, there can also be another source of danger that they do not suspect until it is too late: divorce.
Business assets are generally considered part of the marital estate. Unless your business is specifically protected by a prenuptial or postnuptial agreement, it is fair game in the property division process during divorce. You may be required to compensate your spouse for his or her share of business assets. Your spouse may also be liable for your business’s debts. Separating your business from your marital estate can be a very wise tactic and, if you are already married, a postnuptial agreement can help you do this.
Postnuptial Agreements and Business Ownership
Postnuptial agreements can cover a broad range of topics, mostly focusing on personal and marital finances. Naturally, the best time to negotiate a contract that is in your favor is before you are married; once you get married, your spouse has little incentive to give up access to any business profits he or she would otherwise be entitled to.
But profits are not the only part of a business that need to be protected. Growing a business often requires taking risks, which usually means taking on debt. You may want to protect your spouse from any debt you take on for the business by using a postnup that specifies that only you are responsible for business liabilities.
If you do get divorced, having a postnuptial agreement can prevent the kind of harried negotiation that divorcing couples often endure when dividing assets. One of the best things about a postnuptial agreement is its potential to be as flexible as you need it to be.
Call a Kane County, IL Postnuptial Agreement Lawyer
To learn more about prenuptial and postnuptial agreements and get help determining whether one could benefit you, contact the experienced group of St. Charles, IL family lawyers with MKFM Law. We offer a broad range of legal services and can recommend trusted associates in other fields if necessary. Contact our offices today at 630-665-7300 for a confidential consultation.
Source:
https://www.ilga.gov/
