Deciding to pursue a divorce is a challenging time in a person’s life. You can imagine the ways that your life might improve by going off on your own, but you might also be worried about the integrity of your business. There is more at stake than just money when it comes to dividing a business. Maybe you’ve spent years building your company and have a sentimental attachment to certain aspects of it. Perhaps you want a clean break with your spouse and are concerned about interacting with this person through future business dealings.
Understand what makes an asset complex
Illinois uses equitable distribution for divorces. This distinction means that any property or assets acquired during the marriage duration may be subject to division. Many assets complicate divorces. Business owners need to know which of their assets included in a divorce settlement may make the divorce process more complicated.
Intellectual property: The valuation of IP could be a difficult assignment. A spouse may be entitled to future proceeds from the profits of this IP. An invention may or may not be profitable right now but could undergo drastic changes in the future.
Business Partners: There may be other parties to consider when negotiating ownership of a company. Business partners may need to amend partnership agreements or make changes to the business organization. Owners may need to consider buying out the portion that their spouse is entitled.
Stocks: Stocks or stock options could raise a variety of issues. Investors or consultants may receive stock options in other companies as a form of compensation. Some of these assets may require extensive value assessments to address division.
Begin a new life on your terms
Business owners need to plan when getting a divorce. They need to take stock of their assets to prepare themselves for the crucial decisions they may have to make regarding marital property division. This process can take years to resolve, so it is essential to prepare yourself for that process.