When female entrepreneurs in Illinois head to the altar, divorce is usually the last thing on their minds, and the same can be said about women who decide to start their own business endeavors during their marriage. Whether a spouse takes on the role of a sole entrepreneur or chooses to let her husband become a business partner, chances are that this situation may complicate matters when a marital separation looms in the future.
If the business endeavor fails and there are not many outstanding liabilities to worry about, couples will have little to worry about should the marriage come to an end. The problem for a woman entrepreneur would arise if she has developed her business into the most valuable asset in the marriage. When this is the case, it is important to get started on valuating the business well before the divorce process moves toward the negotiation phase.
Should divorce proceedings fall into litigation due to a lack of agreement, the court will consider equitable buyouts, which means that a woman entrepreneur may have to issue a payout to her husband. In the case of a partnership, an entrepreneur will have to decide whether it makes more financial sense to take control of the business or seek a way out by means of receiving a payout.
The business should be appraised by a reputable appraisal firm that the court will be able to trust; additionally, the business owner should also evaluate things with a critical eye and determine the viability of staying in business. If the husband has been the primary household earner while the business has been operational, things may drastically change after the divorce is finalized. Women entrepreneurs may wish to seek legal counsel as soon as there are signs of trouble in their marriage.
