Feb 27, 2015 | Family Law

Every divorce in Illinois can have its complications. From time to time a couple can divorce with few disputes, but generally there are disagreements as to how to handle the various aspects of the divorce. These aspects can include child custody, parenting time, child support, alimony and property division. Each of these issues are present in many divorces and each can bring about their own unique complications.

However, one issue that can bring about additional complications in a divorce is when one or both spouses own a business. The business must be split equitably just like the other marital property, but often times it is not a simple process. The first issue that must be resolved is valuing the business. Usually this involves the use of a business valuator and can be a complicated process.

The past, present and future earnings of the business must be analyzed in addition to the assets the business owns. Also, similarly to other property in the marriage, the marital portion will have to be determined. If the business was started by one spouse prior to the marriage, then there may be a non-marital portion of the business. Also, how much contribution each spouse provided to the business will have to be analyzed.

After the value and marital portion of the business has been determined, the parties must then determine how to equitably divide the business. This could include selling the business and splitting the proceeds, each having a certain share of the ownership of the business or paying a spouse their portion of the business and keeping the business in the name of one spouse only.

So, as one can see divorces involving businesses can be complicated matters. It involves complicated legal matters in addition to a complicated valuation process involving the use of other professionals. Our firm has handled divorces involving business owners and understand the complexities. For more information on how we handle these cases please visit our Rockford Attorney for Business Owners page on our website.