Divorce considerations that loom large for separating Illinois couples can run a broad gamut of concerns. Kids are often at center stage, of course, with child-centric issues focusing on parenting plans, custody, support and additional matters.
The equitable division of marital assets is understandably a core concern for many divorcing parties, too. Asset distribution is generally a complex realm to begin with, but it can easily become far more complicated for high-net-worth couples. We duly note on our website at the established Law Office of Jamie Mitchell, LLC in Maryville that property division for high-asset couples can feature “significant financial challenges.”
Here is one of those: a business that one or both impending partners worked hard to establish and render profitable over time. What happens to that enterprise in a marital dissolution?
That varies, depending on a number of factors. A recent Forbes article on business-linked outcomes in divorce (written from the perspective of women with assets to protect, but widely applicable without regard to gender) underscores many possibilities. A couple might sell a business outright, equitably dividing the profits. Alternatively, one soon-to-be ex might continue to guide the enterprise after buying the other out. In some cases, a business started prior to marriage by one of the partners manages to remain that individual’s separate property and is exempt from asset distribution.
Forbes writer Jeff Landers notes that a party can “divorce-proof a business,” provided that relevant steps for doing so are taken well in advance of divorce (preferably even before marriage). Those include a timely and carefully crafted premarital agreement, the establishment of a trust and other strategies.
A proven asset-division attorney can provide further information and tailored guidance concerning divorce-linked business protection and other concerns related to property distribution.