There are over 11 million businesses owned by women in the U.S., representing roughly 40 percent of all businesses nationwide. What many married women are not aware of is that all the blood, sweat and tears that went into making the business a success could be on the line if they do not divorce proof their business.
A prenuptial agreement is a good place to start. A prenup is a written legal agreement between soon to be spouses setting forth what would be separate property in a divorce – in this case, a spouse’s business. A prenup is a binding contract signed by both partners in advance of the wedding outlining exactly what will happen to all assets, property and income if you divorce, allowing business owners to protect what they have work so hard to achieve.
If you are married and did not do a prenup, a post-nuptial agreement is an option. A post-nuptial agreement may not offer as much protection because any growth in the value of the business that occurred during the marriage could be considered marital property. However, it is far better to have some measure of protection rather than none at all. In the absence of a prenuptial agreement, a post-nuptial agreement is recommended to protect a business in the event of a divorce.
Questions on Protecting Your Small Business With a Prenup?
Contact an Experienced Illinois Business Valuation Attorney for Answers
If you are planning to marry, whether it is the first or subsequent trip down the aisle, the importance of protecting your small business with a prenup cannot be overstated. Although it may be hard to fathom divorce now, taking steps to protect your business, just in case, makes a lot of financial sense. If you have questions regarding a prenuptial or post-nuptial agreement or have a small business and are considering a divorce and want to understand how Illinois marital property division will affect it, contact our experienced prenuptial agreement lawyer Ronald L Bell to discuss your concerns today at 847-495-6000.