Whether you own your own business or you’re in a partnership (such a medical practice or investment firm), planning for a divorce can pose unique challenges. No one wants their divorce to harm or otherwise interfere with their business, but that’s not always possible to avoid.
Each divorce is highly unique, as is the potential impact of one on a person’s professional life. If you are seeking a divorce and have an agreement with business partners, that likely protects your share of the business from being lost in divorce. These partnership agreements often require that all married partners have a prenuptial or postnuptial agreement.
If you have a prenup or postnup, you may have already spelled out things like which assets will remain separate and how other assets will be divided. If you own a business with your spouse, you should have a partnership or operating agreement with them that addresses what will happen to the business in the event of divorce.
Do you need to get a business valuation?
Unless you have made arrangements like these, you’ll likely need to split the business in some way with your spouse or give them other assets equivalent to their share. If so, you’ll need to get a valuation of it. The two of you will need to agree on a third-party professional and the valuation method to be used. If your spouse is your co-owner, there are various ways to “split” the business.
If your spouse isn’t a co-owner or partner in the business and hasn’t even been involved directly in it, it’s considered marital property subject to equitable division under Illinois law if you started it after you married. That’s unless you have a prenup or postnup stating otherwise.
Other potential considerations
If you’re well-known within your community (or more widely), you’ll want to keep your divorce as private as possible. Some couples get non-disclosure or non-disparagement agreements that limit or prevent discussions of the divorce (or the marriage) in any public forum (including social media).
If much of your time has been consumed with your business, your spouse may have taken the lead in parenting. That can sometimes make custody agreements a battle. Be prepared to fight for the parenting rights you deserve, but remember that the children’s best interests are paramount. If you can’t hold up your end of a 50-50 custody split, it’s better to seek something more realistic.
It’s a lot to consider and can feel overwhelming. The earlier you get experienced legal guidance, the sooner you can start planning for your future.