Couples who choose to divorce often fight over how to divide assets. When a business is involved, it is treated like any other asset. First and foremost, it must be determined if the entity qualifies as marital or non-marital property. Next, the court looks at the growth of the business during the marriage. Finally, what happens when a spouse is employed by the business but does not own it? Individuals who own a business in the state of Illinois need to meet with Divorce Lawyers in Yorkville IL to figure out how to proceed with the dissolution of the marriage.
A business owned by one party before the marriage is considered non-marital property. Thus it will remain the property of the founding spouse. However, if a business owner transfers any interest in the business to the spouse, it is no longer considered his or her non-marital property. In the event the spouse purchased the interest, it is their marital property and will be treated as such. If it is gifted to the other party, it is non-marital property. As this can be very confusing, it is best to consult with an attorney to see how the business will be divided in the divorce.
Expansion of the business during the marriage may lead to a portion of the business being considered marital property, even if one spouse owned it before the marriage. Here the court looks at the funds used to expand the business. If they were taken from marital funds or marital credit was used, the expanded elements of the business are then considered marital property and must be divided as such. Earnings may be classified as marital property, in most cases, yet dividends from the business are treated as non-marital property. Furthermore, if the spouse has an interest in a business, the question of ending their employment must be resolved.
Many couples stay together as they don’t want to deal with these issues or lose any part of their business. With the help of Divorce Lawyers in Yorkville IL, a couple can end their marriage and retain what is lawfully theirs. Contact
Lawyers in Yorkville IL to
(Cosentinolaw.net) today to begin the process. No one should have to remain in a loveless marriage to protect their assets, and this firm ensures they do not have to.
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