A Prenuptial Agreement Can Protect Your Business During a Divorce
As more and more couples wait longer to enter into marriage for the first time, along with the rising prevalence of remarriage, individuals have more time than ever to accumulate wealth and property on their own. Extensive personal assets, of course, can make a subsequent divorce much more complicated, as it becomes difficult to differentiate between marital and non-marital property. For just reason, those who have started a business or obtained ownership of a company prior to marriage are encouraged to consider a prenuptial agreement to protect their interests.
Marital vs. Non-Marital Property
While the law in Illinois already provides that property or assets acquired prior to a marriage are not considered marital property, complications can still arise. For example, if your spouse owned a company before you got married, the company itself may not be part of the marital estate, but income generated by your spouse’s efforts after the marriage are usually considered to be marital. Similarly, any marital property invested into the company during your marriage may need to be reimbursed to the marital estate in the event of divorce, even as the company ownership remains non-marital.
How Can a Prenuptial Agreement Help?
Many of the financial concerns related to your company can be addressed long before they ever become a big problem, through the use of a prenuptial agreement. You and your soon-to-be spouse can negotiate an agreement to keep the business ownership and operation completely separate from the marital estate. You can also plan in advance on how invested marital property is to be handled.
Conversely, you may wish to create a role within your company for your future spouse. Your prenuptial agreement can contain provisions on how that will be structured as well as including what, if any, percentage of ownership will be assumed, along with contingency plans in case the marriage were to fail. Very few couples are able to coexist in a professional environment following the end of their personal relationship.
Let Us Help
Drafting a prenuptial agreement that can withstand any potential legal challenges can be difficult, but we are equipped to assist you in the process. Contact an experienced DuPage County family law attorney at MKFM Law. We will work with you in developing an agreement that protects your rights and will continue to meet your needs for years to come. Call 630-665-7300 to schedule a confidential consultation today.