Will Divorce Affect My Business?

Will Divorce Affect My Business?

Are you a business owner who is preparing for a divorce in Illinois? If so, you may want to ask: Will a divorce impact my company? The answer is “yes”—or more accurately, a divorce can impact a business, and a proactive approach is an absolute must. Here, our Illinois divorce lawyer explains the key things to know about how a divorce could affect your business in Illinois. 

A Business May Be Deemed a Marital Asset (or Partial Marital Asset) in Illinois

Illinois is an equitable distribution jurisdiction. A couple’s marital property will be split fairly—maybe equally, but that is not guaranteed—in a divorce. A business can qualify as a marital asset in Illinois. Indeed, the general rule is that a business is likely a marital asset if it was formed after the marriage began. Further, if the business gained substantial value during the course of the marriage or if marital assets were used to support the business, it might also be fully or partially marital property. A business that is a marital asset will be part of your divorce case. 

You Need a Comprehensive Valuation for Your Company

To effectively protect your company during a divorce, you need to know exactly how much it is worth. A proactive and comprehensive business valuation is a must. As defined by Investopedia, a business valuation is simply“the process of determining the current worth” of the company. Most often, a professional business appraiser will provide an objective and thorough valuation. In doing so, they will take into account many different factors, including industry trends, the company’s reputation, customer base, and more. A proper valuation is the foundation upon which equitable distribution can be built. 

Collaborative Solutions Often Work Best for Business Owner Divorces

The traditional litigated divorce can be a combative process, with both parties battling for their perceived fair share. The good news is that most divorces in Illinois are resolved outside of the courtroom. For business owners, a collaborative approach can be especially effective. There may be benefits to trying to find a solution in a manner that emphasizes communication, transparency, and collective problem-solving. It allows both parties to craft creative solutions that protect the integrity and future of the business. You need to protect your personal financial interests and the future of your business as part of any divorce settlement. 

Contact Our Illinois Divorce Attorney for Business Owners Today

At SAM LAW OFFICE LLC, our Illinois divorce lawyer for business owners have the specialized skills, experience, and legal expertise that you can trust. If you have any questions about the impact of a divorce on a business, we can help. Contact us today for a confidential consultation. With an office in Rolling Meadows, our firm serves communities throughout the Chicagoland area.