When love and life intertwine, it’s easy to get caught up in the excitement of planning a future together. But if you own a business or a home—or both—taking proactive legal steps can protect your assets and preserve your peace of mind. In Illinois, prenuptial and postnuptial agreements are valuable tools that can help you safeguard your investments in the event of divorce or death.

What Are Prenuptial and Postnuptial Agreements?

A prenuptial agreement is a contract entered into by two people before marriage that outlines how property, debts, and other financial matters will be handled during the marriage and in the event of divorce or death. It’s important to keep in mind that you cannot contract for custody (now called “allocation of parental responsibility) or parenting time in a prenup.

A postnuptial agreement is similar, but it’s signed after the couple is already legally married, and has the additional requirement of legal consideration.

Both types of agreements are legally recognized in Illinois and can be especially beneficial for business owners and homeowners who want to clarify ownership and reduce potential disputes later.

Why Use These Agreements to Protect a Business?

If you own a business, the last thing you want is for it to become entangled in a divorce proceeding. Without a prenuptial or postnup, your business—or a portion of its value—may be considered marital property, subject to division under Illinois’ equitable distribution rules. Equitable distribution doesn’t necessarily mean equal, and one party can be awarded more of the marital estate than the other based on several financial considerations.

Here’s how a prenuptial or postnuptial agreement can help:

  • Maintain sole ownership: Clearly state that the business is and will remain separate property.
  • Define appreciation: Specify whether or not any increase in business value during the marriage is subject to division.
  • Avoid operational disruption: Prevent an ex-spouse from gaining a financial or operational interest in the company.
  • Protect partners/investors: Provide stability and protection for other stakeholders who don’t want a third party involved post-divorce.

A prenuptial or postnuptial agreement can be a key part of a package to buy or sell a business!

Protecting the Family Home

Homes often carry emotional as well as financial value. A prenuptial or postnuptial can determine:

  • Who retains the home in case of divorce.
  • How mortgage and maintenance costs are divided during the marriage.
  • What happens to the property if one spouse contributes to its upkeep or renovations.

This is particularly important if:

  • One spouse owned the home before marriage.
  • A home was inherited or gifted.
  • The couple plans to live in a home tied to one spouse’s business.

Key Legal Considerations in Illinois

Illinois follows the Uniform Premarital Agreement Act (UPAA), which means prenups (and similarly postnups) must meet certain requirements to be enforceable:

  • Written and signed: Oral agreements aren’t enforceable.
  • Full disclosure: Both parties must fully disclose their assets and debts.
  • Voluntary: Agreements must be entered into without coercion or duress.
  • Fair and reasonable: Courts may not enforce agreements that are unconscionable or grossly unfair.

Postnuptial agreements may face slightly more scrutiny than prenuptial agreements, especially since the parties are already married, and courts want to ensure neither spouse was pressured into signing.

When to Talk to a Lawyer

Whether you’re getting married soon or have already tied the knot, it’s wise to consult with an experienced family law attorney in Illinois. They can help:

  • Draft an agreement tailored to your situation.
  • Ensure your document is legally sound and enforceable.
  • Update your agreement as your business, assets, or family grows.

Conclusion

Prenuptial and postnuptial agreements aren’t about expecting a relationship to fail—they’re about protecting what you’ve built and planning wisely for the future. In Illinois, they are effective legal tools for securing businesses and homes against uncertainty and conflict. By addressing these issues early, you can strengthen your relationship and your financial foundation.