How Can I Protect the Family Business During Divorce in Illinois?

 Posted on May 31, 2025 in Divorce

As a business owner, the unknown of the divorce process can be intimidating. Illinois is an equitable distribution state, and that means that in a litigated divorce, a family business, which is often marital property, will be divided fairly. With so much at stake, understanding how you can help preserve your valuable assets during divorce is crucial. If you have questions about how to protect your business or what could happen to it during divorce proceedings, an experienced Geneva, IL property division attorney can help. 

Business Valuation During Divorce in Illinois

Illinois law outlines the rules for determining whether property is categorized as marital or non-marital property. For businesses, this process can be complicated. Sometimes, none, all, or only a portion of the business is marital property. Factors like how the business was acquired and whether your spouse contributed to its value play a role in how the company is characterized. 

Ensuring your business is accurately valued is a necessary and invaluable step in protecting your investment and helping you make informed decisions about how the business will be allocated during a divorce. The valuation process can be complex, involving expert considerations of assets, liabilities, and future earnings. You need an attorney who is familiar with business valuation and valuators in your area.

Options for Dividing the Family Business During an Illinois Divorce

Once you have a clear picture of what your business is worth and whether it is subject to division, you can consider how you want to divide it. Your legal options could include:

• Compensating your spouse for their share of the business, allowing you to take full ownership

• Selling the business and splitting the proceeds

• Dividing the business's assets

• Maintaining ownership as joint owners

Your attorney can help you understand the implications of these choices and what you should consider before you make a final decision. Not all options are feasible for every situation.

The Role of Prenups and Postnups in Protecting Your Business During Divorce

Prenuptial and postnuptial agreements are useful ways to proactively protect your business interests in the event of a divorce. You could use either to establish your business as separate property or outline clear guidelines for ownership. When drafted with an experienced attorney, you can trust that your prenup or postnup will be valid and enforceable.

In the absence of either agreement, you can take careful steps to make it easier to prove that your business is separate property. For example, keeping business and personal finances separate and maintaining thorough financial records can tell a judge exactly who contributed to the business throughout the marriage and help them make decisions about allocating it.

Contact a Geneva, IL Asset Preservation Attorney Today

When divorce seems imminent, concerns about the family business are valid. 

Even before marriage, you should consider ways that you can preserve your assets should divorce unfortunately occur. Working with our experienced Kane County, IL asset preservation lawyers at Serrano Hanson & Hurtado, LLC is the first step in creating a strategy customized to your situation. The process can be complex, but with our help, you can feel safe knowing that your interests are protected and the proper safeguards are in place. Call 630-844-8781 to schedule a free consultation in English or español.