Dividing Business Assets in an Illinois Divorce

 Posted on July 27, 2023 in Divorce

Divorce proceedings involving a shared business can be complex, requiring careful consideration of the best course of action regarding the division of business assets. In Illinois, divorcing couples have various options to consider when it comes to the business, including pursuing full ownership, maintaining joint ownership, pursuing joint ownership, or selling the business entirely. Today, we will examine these three potential options for dividing business assets in an Illinois divorce. If a business is relevant to your case, discuss your options with your attorney regarding how best to divide this valuable asset.

Pursuing Full Ownership of the Business

In some cases, one spouse may be interested in continuing the business independently. This option may entail buying out the other spouse’s share of the business. To pursue full ownership, the spouse must negotiate a fair business valuation and determine the buyout terms. This can involve financial arrangements, such as cash payments, installment payments, or offsetting the value with other marital assets. Acquiring full ownership allows the spouse to maintain control over the business and make independent decisions.

Maintaining Joint Ownership of the Business

In certain situations, divorcing spouses may opt to maintain joint business ownership even after the divorce is finalized. This arrangement requires a high level of cooperation and ongoing communication between the former spouses. Co-owning a business post-divorce may involve establishing a well-drafted partnership agreement or creating a corporate structure that clarifies each party’s rights, responsibilities, and decision-making authority. Joint ownership can be a viable option when both spouses are invested in the business’s success and can effectively navigate potential conflicts.

Selling the Business

This may be a viable option if neither spouse wishes to maintain ownership of the business or if the business is not financially viable to sustain both parties post-divorce. This option may involve engaging professionals, such as business brokers or appraisers, to determine the business’s fair market value. Selling the business can provide a clean break and allow both parties to move forward with their financial lives separately.

Contact a Warrenville Divorce Attorney

Consulting with an experienced attorney can provide valuable insights into the best strategy for dividing business assets while aiming for a fair and equitable resolution during a divorce. Each option has advantages and challenges, and individuals facing this situation must seek legal guidance to understand the legal implications and make informed decisions. Contact the experienced Winfield divorce lawyer with Hensley Sendek Law. Call 630-358-9029 for a free consultation.

Source - https://www.equitablemediation.com/blog/divorce-with-a-business-involved