Should I Consider a Business Valuation Before My Illinois Divorce?

 Posted on February 21, 2024 in Divorce

The division of marital assets and property that happens in a divorce is generally complicated to figure out. If either spouse owns a business, this is another matter that needs to be decided. Issues of ownership and business value will become important factors in any decision that will determine the fate of the business. If you or your spouse own a business, you should speak with an experienced Winfield, IL asset division attorney to see whether a business valuation might be a good step for you.

How Do Business Valuations Work?

When someone getting a divorce is a business owner, it is important to understand how ownership is determined. A business that was founded or acquired before the marriage is generally considered a non-marital asset and under the sole ownership of the spouse who founded or acquired it. If it began or was acquired once the couple was married or the other spouse contributed to the company, financially or otherwise, it might be considered a marital asset subject to division.

The process of determining the value of a business is based on an analysis of its financial records, debts, revenue, and potential. The business’s market value compared with other similar businesses is also analyzed. There are divorce attorneys and accountants who specialize in business valuations. If the business is deemed marital property, there are several options the two spouses can choose from:

• Continue to co-own the business.
• Sell the business and split the profits.
• One spouse can buy the other spouse out.

The business valuation becomes more significant once the couple has decided which option to take. Regardless of whether they choose to have one spouse buy the other out, sell the business, or continue owning it together, both spouses need to know exactly how much their share of the business is worth.

Schedule a Free Consultation with a Warrenville, IL Divorce Lawyer

If you and your spouse are considering divorce and you are concerned about what will happen with a business you both own, an experienced DuPage County, IL divorce attorney can go through all your options with you and help you make an informed decision. Call Hensley Sendek Law at 630-358-9029 to schedule a free consultation and get started on a path of protecting your rights and best interests and working toward a financially stable future.