Prenuptial agreements help protect family-owned businesses when couples divorce. These agreements lay out clear rules about what happens to the business. With a solid plan in place, you can keep the business in the family and avoid major conflicts.
What is a prenuptial agreement?
A prenuptial agreement is a contract two people sign before marriage. It explains how to divide money and property if the marriage ends. If you own a family business, the agreement can say who keeps it. Without this contract, a court might split the business during a divorce.
How prenuptial agreements protect family businesses
A prenuptial agreement protects your business by stating who owns it. It separates the business from other property shared during marriage. In Illinois, you and your partner can choose what goes into the agreement. You can make sure the business stays with you and your family. This helps avoid forced sales or arguments with your ex-spouse.
Illinois law and prenuptial agreements
Illinois law allows prenuptial agreements if both people agree and follow the rules. The Illinois Uniform Premarital Agreement Act lists the steps for creating a valid agreement. If you follow the law, your contract can protect your family business during a divorce. Courts in Illinois will honor agreements that meet these rules.
By planning ahead, you protect what you have built. A prenuptial agreement keeps your business in trusted hands. It also gives you peace of mind and helps you avoid long court battles.
You don’t need to risk the future of your family business. With the right agreement in place, you keep control, stay prepared, and protect the people who depend on it.