Does My Spouse Have a Claim to My Family Business?

 Posted on March 20, 2025 in Property Division

If you have a longstanding family business, you may wonder what will become of it in your divorce. When making a decision about property division, a judge will take several factors into consideration. Depending on the judge’s ruling, your spouse could be entitled to a fraction of your business. An Illinois family law attorney can give you an idea of what to expect in property division and advocate for a favorable settlement on your behalf.

At Shaw Sanders, P.C., we understand just how much your business might mean to you. Our attorneys are skilled negotiators with experience handling complex divorce matters. We will pursue an efficient resolution outside of court, but if necessary, we are prepared to protect your family business in court.

Commingling Business and Marital Funds 

One of the most common ways separate property becomes marital property is through commingling. This refers to the act of mixing a separate asset with assets from your marriage, often unintentionally. 

If you invest money from a shared bank account into your business, your family business might lose its identity as separate property. Since this is an easy mistake to make, many couples opt to sign a marital agreement to avoid any confusion later down the line. If your spouse does have a valid claim on your family business, you may be able to pay out his or her interests through an award of spousal support or a larger share of marital property.

Contributions to The Business

It is not uncommon for husbands and wives to help out with their partners’ daily operations. This might be an official capacity as an employee or more informally. If your spouse contributed labor to your business that helped it grow, your spouse might be entitled to a portion of its total value.

At Shaw Sanders, P.C., we can help you pursue a solution that does not disrupt your business’s operations while your divorce is ongoing.

Growth During the Marriage

If you took over a family business prior to your marriage, it is generally assumed to be separate property unless proven otherwise – like with the circumstances mentioned above. However, if your business grew significantly during your marriage, your spouse may be entitled to some of those proceeds. 

Even business received via inheritance during your marriage is likely assumed to be your separate property. However, it could still end up commingled when it appreciates in value, so it is important to make sure the business remains protected.

Meet With a Kane County, IL Family Law Attorney Today

It is reasonable to have some anxiety about property division in your divorce. With the help of our St. Charles, IL divorce lawyers at Shaw Sanders, P.C., you can lay those worries to rest. We will act in your best interests, working towards a split of marital property that does not jeopardize your business. To schedule a free consultation today, call our offices at 630-584-5550.