Child support payments are non-deductible payments made to a parent for the purposes of assisting that parent with the expense of raising the couple’s children. Read More >
A collaborative divorce avoids the costs and conflict of divorce litigation by utilizing the collaborative law process. This method of conflict resolution removes the couple from the courtroom and allows them to resolve their issues peacefully, with dignity and cooperation, while incorporating the advice and counsel of collaboratively trained professionals. Read More >
Child custody refers to where a child resides and who makes parental decisions for that child. Read More >
Divorce, or dissolution of marriage, is a legal proceeding that ends a marriage. Read More >
Divorce can be especially complicated for small business owners, who bear a large responsibility in running and maintaining their business. On a personal level, a poorly-managed divorce has the potential to drain the business owner of focus, time, and money, all of which are valuable assets for any company. A small business owner in Chicago or Oak Park will encounter a variety of issues when facing a divorce. In this comprehensive guide, the family law attorneys from Conniff Law Offices cover the various factors and methods to consider to help facilitate a smooth divorce where a business is involved.
First and foremost when dealing with a small business in divorce, it is important to note the possibility that a court could find the small business to be marital property. There are circumstances where businesses that began prior to the marriage may be considered as marital property. Even family businesses are subject to becoming marital property. Where a family business that existed prior to the marriage is handed down to a married son or daughter through a restrictive stock transfer or another form of conveyance, that transfer or conveyance during the marriage may be treated as a gift to the marital estate. In such a case, that gift to the marital estate may at best be included in the total marital estate for allocation between the spouses, or, worst case scenario, subject to division upon dissolution.
In a divorce with a small business involved, the valuation of the small business may also prove problematic. Courts will consider business valuations in determining the division of marital assets between spouses and the ability to pay, or need to receive, maintenance and/or child support.
Further, if the court determines both spouses have an ownership interest in the business, the business value will play an important role in any distribution of marital assets or buyout offers between spouses, assuming that the parties settle before trial.
A small business owner must also consider the effect that maintenance and child support payments may have on their cash flow and liquidity. If these payments are not properly structured, a business owner may face financial strain.
Commonly, protecting a small business during divorce is achieved with a prenuptial agreement (prenup). A prenup is a contract each partner signs before marriage, describing what will happen to all assets, property, and income should a divorce, separation, or death occur. Having the foresight to get a prenup before marriage is the most reliable way to ensure you would retain ownership of your small business in a divorce.
If you’re already married and do not have a prenup, your best option is a postnuptial agreement (postnup). A postnup includes the same important assets and property as a prenup, but it is signed after marriage.
This is a rare situation, but in the case of a very amicable divorce, the spouses may be able to continue co-owning the business together. Even if the two of you are on excellent terms, it is strongly recommended that you have a formal agreement, such as a shareholder’s agreement or an operating agreement, to memorialize that the business relationship is now one of independent investors.
If the spouses want to take this route but do not want to run the business together, one spouse could take on the major responsibilities of operating the business, while the other could receive a certain percentage of payments moving forward which would act as their share of the marital assets.
Small business owners should only work with experienced divorce attorneys who understand the complexities of their small business in a divorce and the unique needs that go along with it. While a divorce with a business involved will proceed through the same legal channels as a regular divorce, the final agreement will likely be dissimilar from a standard marital settlement agreement.
The Oak Park and Chicago-based family law attorneys at Conniff Law Offices have many collective years of experience in protecting a small business during divorce. Above all else, we value compassion, excellence, and discretion, which we apply to every case we work through. To learn more about how our team can help you, please contact us to start a case review.
Divorce litigation is the process of bringing legal claims before a judge and having the judge make the final decisions about issues concerning a couple’s children, their assets, and family support. Read More >
In divorce mediation, the parties meet with an impartial trained mediator to come up with solutions for disputes in their divorce, including issues such as custody, parenting time, division of assets and debts, child support, and maintenance. Read More >
Maintenance, also known as alimony or spousal support, is a sum of money given from one spouse to the other to provide for the other spouse’s support during or after the divorce. Read More >
A negotiated divorce settlement is an agreement crafted between the two parties with the assistance of their attorneys, and it is a very effective ways to resolve a divorce. Read More >
Property division in divorce refers to the separation and assignment of the parties’ assets, including bank and retirement accounts, savings, and most physical possessions. Read More >
An amicable divorce is one in which the parties are willing and able to negotiate regarding the major issues in their divorce. Read More >
Child support payments are payments made to a parent for the purposes of assisting that parent with the expense of raising the couple’s children. Read More >
To end or dissolve a civil union, a couple must rely on the same law that a married couple relies on to dissolve their marriage; they must proceed under the Illinois Marriage and Dissolution of Marriage Act. Read More >
In divorce mediation, the parties meet with an impartial trained mediator to come up with solutions for disputes in their divorce, including issues such as custody, parenting time, division of assets and debts, child support, and maintenance. Read More >
A collaborative civil union divorce avoids the costs and conflict of divorce litigation by utilizing the collaborative law process, a method of conflict resolution that removes the couple from the courtroom and allows them to resolve their issues peacefully, with dignity and cooperation, while incorporating the advice and counsel of collaboratively trained professionals. Read More >
Child custody refers to where a child resides and who makes parental decisions for that child. Read More >
Dissolution of a civil union can be especially complicated for small business owners. On a personal level, divorce is likely to distract a business owner and consume valuable time. Legally, there are many scenarios where a small business will be considered an asset in the union estate and subject to division. The repercussions of this can be broad and potentially damaging. Read More >
Civil union divorce litigation is the process of bringing legal claims before a judge and having the judge make the final decisions about issues concerning a couple’s children, their assets, and family support. Read More >
Maintenance, also known as alimony, is a sum of money given from one partner to the other to provide for the other partner’s support during or after the divorce. Read More >
A negotiated civil union settlement is an agreement that is crafted between the two parties with the assistance of their attorneys. Negotiated civil union settlements appeal to couples that prefer to work directly with one another and avoid court intervention. Read More >
Property division in a civil union divorce refers to the separation and assignment of the parties’ assets, including bank and retirement accounts, savings, and most physical possessions. Read More >
An amicable civil union divorce is one in which the parties are willing and able to negotiate regarding the major issues in the dissolution of their civil union. Read More >
Child support payments are payments made to a parent for the purposes of assisting that parent with the expense of raising the couple’s children. Read More >
If parents are unmarried, the parent responsible for the child has a right to receive child support. Child support payments are usually based on the guidelines described in the Illinois Marriage and Dissolution of Marriage Act. In addition to guideline child support, the non-custodial parent may be required to contribute to educational expenses, medical insurance, medical expenses, day-care, summer camp, extra-curricular expenses, and college expenses. Learn more about child support and how its calculated below.
What is parentage? Essentially, it’s a documented legal relationship between a parent and their child. Parentage can be established in Chicago whether a couple is married or unmarried with one of the following:
After a child’s parentage has been determined, one parent may be required to pay the other parent child support. Parental responsibilities and parenting time (known formerly as custody and visitation), however, must be established by the courts.
Once paternity has been established, one parent can seek child support from the other. If you were found to be the parent of a child, the other parent can receive child support from you based on Illinois’ “income shares” model, which was established in 2017.
Whether you’re seeking child support payments from the other parent, or you have questions about establishing paternity, Conniff Law Offices can help. Contact us to set up a consultation on our Oak Park or Chicago office.
Child custody refers to where a child resides and who makes parental decisions for that child. Read More >
Parentage actions are initiated to identify a child’s biological parent, typically the father. Read More >
Most custody judgments have clauses prohibiting the custodial parent from removing the minor child from the state. Read More >
A post-civil union agreement is a contract between the parties, executed during the civil union, that addresses what will happen financially during the course of the civil union, in the event of dissolution of the civil union or the death of a party, or in other agreed upon circumstances. Read More >
A postnuptial agreement is a contract between the parties, executed during the marriage, that addresses what will happen financially during the course of the marriage, in the event of divorce, the death of a party, or in other agreed upon circumstances. Read More >
A pre-civil union agreement allows for an efficient distribution of assets belonging to the parties and to the union. A pre-union agreement typically only takes effect in the unfortunate event of divorce or death. Read More >
A premarital agreement, also known as a prenuptial agreement, allows for an efficient distribution of assets belonging to the parties and to the marriage. A premarital agreement typically only takes effect in the unfortunate event of divorce or death. Read More >
Child support payments are payments made to a parent for the purposes of assisting that parent with the expense of raising the couple’s children. Read More >
During the marriage, parents have no legal obligation to contribute towards the college expenses of their children. However, after filing a petition for dissolution of marriage, 750 ILCS 5/513 requires both parents to contribute to their child’s college costs to the best of their ability, while considering the standard of living the child would have enjoyed had the marriage not been dissolved, the financial resources of the child, and the child’s academic performance.
It’s often difficult to determine each parent’s ability to contribute to college costs. One of our attorneys will assist with reviewing the other party’s and your financial information and evaluating the expected cost of college attendance, including all associated fees and costs — less scholarships and grants. Typically, college expenses are negotiated as a separate issue from child support while the child is a minor. Parents, however, can discuss college planning during or after divorce proceedings.
If you and your spouse are divorced, college expenses can generally be handled in three ways:
Again, if the parents can’t agree on their respective contributions, it’s necessary to bring the matter before the court before incurring any college expenses. Our team of lawyers can help minimize any unnecessary conflict involved in planning college expenses. Through calm and level-headed negotiation, we can assist in making the situation less arduous for parents and children alike. Contact us for a consultation at our Chicago or Oak Park office to begin the process.
Maintenance, also known as alimony or spousal support, is a sum of money given from one spouse to the other to provide for the other spouse’s support during or after the divorce. Read More >
Most custody judgements have clauses prohibiting the custodial parent from removing the minor child from the state. These clauses are typically added to permit both parents to play an active role in the child’s life. However, there are a variety of circumstances where removing the child from the state would be in the child’s best interests. In these instances, the court must be petitioned and the custody agreement must be modified. Read More >
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