How Can a Prenuptial Agreement Protect My Illinois Business?

 Posted on December 00,0000 in Illinois family law attorney

Most people have some sort of understanding as to what a prenuptial agreement is. Countless movies and television shows have depicted prenuptial agreements as documents that a wealthy person insists on being signed before the wedding to protect him or herself from a potential “gold-digging” spouse. While that is one reason to get a prenup, there has been a rise in prenuptial agreements in recent years for other reasons, especially among millennials. Prenuptial agreements can be extremely helpful in many ways, including creating protections for your business in the event you get a divorce.

Is Your Business Considered Marital Property?

In Illinois, only marital property is subject to division in the event of a divorce. Marital property includes anything that was acquired after you were married but before a divorce is settled or legal separation is declared. That being said, if you had a business before you were married, the ownership of the business will typically stay with you. This does not mean all is safe, however. If your spouse played any role in the business while you were married, he or she could be entitled to a portion of the growth in the value of the business.

How Can a Prenuptial Agreement Benefit You?

If you own any sort of company at the time you get married, have a business in the works, or plan to start a business in the future, you should seriously consider getting a prenuptial agreement. If you currently have your own company, a prenuptial agreement can specify how you will value the business in the future if you get a divorce, preventing a third-party valuation process down the road. It can also allow you to specify a certain percentage that your spouse will receive if you do get a divorce. This can prevent your spouse from getting too much of the value of your business if you decide to split up.

Even if you do not currently own a business, but you think you might have a business in the future, prenuptial agreements can be extremely beneficial. You can draft a prenuptial agreement to state whether or not your spouse has any right to a stake in your future business, or if your spouse has any right to the value of your business that currently is not profitable or bringing in much money.

Contact a Kendall County Family Law Attorney

As a legally binding document, prenuptial agreements have to be drafted in a specific way, and they must contain straightforward and unambiguous language. At the Law Office of Matthew M. Williams, P.C., we can help you draft a prenup upon which you and your partner can both agree. Our skilled Yorkville prenuptial agreement lawyer can help you create a rock-solid agreement that will hold up in court. Call our office today at 630-409-8184 to schedule a consultation.

Sources:

https://www.forbes.com/sites/frawleypollock/2019/07/20/how-a-prenuptial-agreement-can-help-protect-your-business-interests/#12ad3a444f94

https://www.marketwatch.com/story/frozen-eggs-student-loans-and-other-unexpected-reasons-to-get-a-prenup-2018-11-01

https://www.businessinsider.com/why-sign-a-prenup-marriage-divorce-2018-9