Prenup Considerations for an Illinois Business Owner

by | Aug 22, 2019 | prenuptial agreements

The bottom line concerning a prenuptial agreement in Illinois is direct and simply stated. We stress on our website at the established Mitchell Highlander, LLC (with locations in Maryville, , and O’Fallon) that a prenup “will greatly affect how your marital property is divided.

That is the very point of such a marital contract, of course. Its utility has become increasingly clear for legions of marrying couples across the country in recent years.

Many soon-to-wed partners fully expect a lifetime spent together, but still seek to prepare for an alternative outcome that might potentially occur in the future. A well-crafted prenuptial agreement can timely set forth their expectations concerning many key financial points. It can additionally guard against downsides that might otherwise occur.

A recent Forbes article spotlights the special relevance a prenup can command for a marrying individual with an already established business. In some cases, both partners own a business.

A prenuptial contract can precisely address how those entities will be handled in a divorce. Focusing due attention on all relevant variables at an early juncture can help underscore priorities, legally chronicle expectations, and inform business-linked actions during marriage.

Will a business be run together by both spouses or just one party? Will marital property contribute to company growth, or will all assets tied to the business be deemed as one partner’s separate property? Will company debt be construed as an exaction placed only upon one spouse or both married partners? How will the business be valued, and how do the parties envision it being treated in a divorce?

All those concerns and additional considerations can be raised and legally dealt with in a marital contract. As Forbes notes, timely identifying and purposefully dealing with them can materially promote marital peace of mind where a business is involved.