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How to Address Your Business During Your Illinois Divorce

Posted on in Asset Division

Wheaton asset division lawyer business valuationDuring a divorce, one of the biggest issues you must deal with is the asset division process. Everything that you and your spouse own together must be allocated between the two of you during this process. Illinois is an equitable division state, which means marital property should be divided in a fair manner. However, fair does not always mean equal. Most assets are easy to define and allocate, but what happens when you or your spouse own a business or a private practice that you must address?

Options For Your Business

Before you make any decisions, you should get a fair valuation of your business. It is important to know exactly what your business is worth before you start figuring out how to deal with it. There are various methods you can use to determine the value of your business. Your divorce attorney should be able to recommend an appraiser who can offer advice about your valuation.

When it comes to your business and your divorce, there are three main options that you have to choose from. You can buy out your spouse’s share of the business, you can remain co-owners, or you can sell your business. Each option has its own benefits, but your best option depends on your specific situation.

  • Buying out your spouse: In many situations, the preferred action is for one spouse to buy out the other. This means that the spouse who wanted to continue owning the business would pay off or give the other spouse a certain amount of money for their portion of the business. This option usually only works if the owning spouse has the liquid assets needed to come up with such money. This option is the only one that allows one spouse to become the sole owner of the business.

  • Remaining co-owners: In some cases, it may not be possible for a spouse to produce the amount of money needed to buy out the other spouse. In these situations, it may be possible for both spouses to remain co-owners of the business if they are amicable with each other. A version of this option could involve one spouse maintaining sole decision-making responsibilities while the other spouse receives a percentage of the business’s profits. 

  • Selling your business: Often as a last resort, a couple may opt to sell the business rather than continuing to own it. If the couple decides that this is the best way to deal with the business, they can split the profits of the sale. Selling a business that you both own can be done as long as you both agree to sell the business or if a court order requires you to do so.

Our Wheaton, IL Asset Division Attorneys Are Here For You

At Goostree Law Group, our lawyers have experience dealing with complex divorce issues, such as division of family-owned businesses and other high-value assets. We understand how important your business is to your livelihood, and we are here to make sure your best interests are protected every step of the way. To discover how we can help you with your business during your divorce, contact our skilled DuPage County divorce lawyers at 630-364-4046 to schedule a free consultation.

 

Sources:

https://www.americanbar.org/groups/real_property_trust_estate/publications/probate-property-magazine/2019/march-april/three-options-a-private-business-a-divorce/

https://www.forbes.com/sites/lawrencelight/2016/03/07/when-2-business-owners-divorce-what-to-do/#1c78e38f343b

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