What Happens to a Family Business When the Owners Divorce?

 Posted on December 00, 0000 in Division of Property

The division of marital property can be a long and contentious process, as both parties attempt to secure the value of joint assets and obtain full or majority ownership of the property. This can be particularly when a married couple owns a business together, and that business becomes part of the divorce negotiations.

Keeping the Doors Open

It is not uncommon for a small, family business to close its doors forever as a result of a divorce. In addition to the stress and resentment this causes, a business closing also negatively impacts the employees who lose their jobs and even the community that relies on its services. Here are few tips to consider when taking steps to protect your business prior to or during a divorce.

• Keep accurate financial records, and do not allow business finances to mix with family finances.
• Speaking of records, make sure all relevant documents are stored safely and easily accessible.
• If you are intent on keeping the business after the divorce it may require that you sacrifice other assets or property.
• Obtain a fair and accurate appraisal of the business using the services of a neutral, court-appointed professional.
• Placing the business in a trust prevents it from being counted among marital assets, and protects the value of a company’s growth.
• Obtaining a strong, prenuptial agreement also has the power to protect your business in the event of a divorce.
• Consider different buyout scenarios; even going as far as to establish a payment schedule.
• If you know a divorce is on the horizon, consider easing your spouse out of any job within the business or severely reducing their responsibilities prior to filing.

One silver lining to all this is that it is unusual for a business to be sold in order to satisfy a divorce settlement.

An Experienced Aurora Divorce Attorney Can Help Save Your Business

As any experienced divorce attorney will tell you, no two cases are exactly alike. Add the complexities of a family business to the mix and the stress can increase exponentially. However, when you rely on the counsel of a knowledgeable Illinois divorce lawyer who understands the delicate nature of asset division, and the laws that guide such matters, the end result can be satisfying. The Law Office of Matthew M. Williams, P.C. uses a number of legal resources and specific knowledge gained from years of experience to help clients achieve a fair and equitable divorce. To schedule a consultation, contact our offices at 630-409-8184 and learn how this experience will benefit you.

Source:

https://www.entrepreneur.com/article/220124