How can startup founders protect their business during divorce?

| Oct 22, 2019 | High-Asset Divorce |

Getting a prenup does not mean that a couple thinks their marriage will not work out as intended. Instead, it is simply a way to make sure that both people and their respective assets are protected should they divorce. A person in Illinois does not need lots of wealth or assets to benefit from a prenup, either. Startup founders, entrepreneurs and investors who have yet to make it big can still protect their current and future wealth.

Tech startups often seem as if they are popping up more and more frequently. While many of these new, smaller tech companies do not rise to the level of raking in millions in profits, some certainly do. An entrepreneur or an individual working on a startup idea has to be aware of the future and what it may entail. Since it is possible that a company may make it big, and it is also possible that the founder may divorce, he or she can clearly state that any current or future business ventures or startup ideas are separate property, and not subject to asset division.

Although it is not always the case, millennials are often the driving force behind new tech startups. It might come as no surprise to learn that many lawyers are seeing more and more people requesting prenuptials. Many of those are millennials.

While marital assets are split equitably in Illinois, some people have their own understanding of the word “fair,” especially in regard to privately held businesses. It is understandable that a business owner would not want to split the wealth that he or she created with a spouse who had no part in the running or management of it. By using a prenuptial agreement, both spouses can feel confident in their abilities to pursue business ideas without the possibility of losing out during divorce.

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