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Posted on in Property Division

Il divorce lawyerFamily businesses can be difficult to successfully maintain. Some believe that mixing family and business is a recipe for disaster; however, family businesses often become the pride and joy of the owners. Because the businesses are often built from the ground up, it is much more difficult to let them go. This is often a problem that divorced couples who own a family business face. Not only do they have a personal connection to their workplace, but those involved in family businesses often have often invested a lot of time and money into their business. Continue reading to learn about the various options divorced couples have when deciding what to do with their family-owned business.

Your Options

There are a variety of options available to those trying to figure out what to do with the family business while going through a divorce. Every couple’s divorce is different, some being a mutual decision while others happen by surprise. Regardless of the situation at hand, sometimes one has to separate emotions from business no matter how much time and energy they have put into their job.

  1. Continue Owning the Business Together: Though this option does not work for everyone, some choose to continue running their family business in a similar manner. This is more common in couples that are mutually ending their marriage amicably. While you may decide to work different schedules and keep business meetings to a minimum, keeping the family business within the family is an option for some.

  2. Buy Out Your Ex-Spouse: For most couples, working together post-divorce is unhealthy and unreasonable. An option for those who no longer want to be tied together personally or professionally is to have one spouse buy out the other. This will require legal assistance on both sides but is often a relatively quick and easy solution.

  3. Sell the Business: Family-owned businesses are more than just a business to those involved. Memories become tied to the building and the business as a whole, making it extremely difficult to continue working in the environment. Many decide to sell their family businesses and have a fresh start. This can be due to the personal connection or financial burden that the business has once a marriage comes to an end.

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Illinois divorce attorney, Illinois family lawyerProtecting your finances as you prepare for the divorce process is perhaps one of the most important tasks you can take on before your marriage officially ends. Planning is everything, as divorce can easily wreak havoc on your financial standing if you are not careful. Protecting your assets and monetary funds is critical if you want to maintain the lifestyle you are currently accustomed to and ensure your financial future is secure.

Constructing a Game Plan

As a divorcing spouse, you are already facing an emotional toll; the last thing you want is to tack on additional stress due to financial trouble, especially when some of that trouble can be avoided if addressed early on. Here are some important steps you can take to safeguard your finances amidst your impending divorce:

Take inventory - As overwhelming as it might be, taking financial inventory is a must. Sit down and create a list of every account and asset you share with your soon-to-be ex-spouse. You will need to take stock of joint accounts and pay special attention to lines of credit, as well as wills, retirement accounts, and any pending purchases or joint business investments. Also take note of any life insurance policies you opened up while with your spouse. You may wish to modify the policy if you had them listed as a beneficiary. Once you have a clear, thorough list of all your debts, accounts, and belongings, it is time to sit down with your spouse and speak civilly about what you would both like to see happen with each respective item on the list.

Establish your own credit - Whether you are at the beginning of the initial separation process, have a hunch that your marriage is on the rocks, or are diving straight into divorce, it is never too soon to try and establish your own line of credit. If you are on the verge of separating, you are at an advantage; the sooner you establish your own credit, the better off you will be post-divorce. This goes for standard bank accounts, as well. The moment you see your marriage coming to an end, start shuffling away some cash of your own. The divorce process itself costs money, and you will need funds to get by on your own afterward. This is imperative, especially if you have never lived alone or will be on your own for the first time in years.

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b2ap3_thumbnail_asset-division.jpgRegardless of how much or how little you and your soon-to-be ex-spouse own, the division of assets in the divorce process can significantly impact your financial standing after your marriage is over. Whether you need to look out for your own well-being or you have additional family members to care for after the separation, money matters. What you and your spouse split and how you split it will be a defining factor in the overall quality of your long-term financial security.

Where Asset Division Can Get Tricky

Determining Value

Some couples make the mistake of believing that the most important factor in the division of assets is the flat dollar value. Whatever something is worth must determine its overall value and it should simply be divided evenly, right? This is not always the case. When it comes to most assets, their worth must be based on more than just their dollar value. For example, you must take into account factors such as an asset’s liquidity as well as how its sale will be affected by taxes. The long-term worth of a piece of property is just as important as its immediate worth.

Types of Property

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