Glen Ellyn, Illinois Divorce Lawyers for Business Division

Attorneys for Business Valuation and Division in Glen Ellyn Divorce Cases

When a couple owns significant assets, including family businesses or other business interests, the legal and financial issues that may arise during their divorce can be significant. A business may not only be the primary source of income for one or both spouses, but it may also be one of the most valuable assets in the marital estate. Addressing business assets during divorce will require a careful legal and financial analysis, particularly in high net worth divorce cases where a business may be tied to complex compensation structures.

Whether a spouse is a sole proprietor, partner, or shareholder in a larger enterprise, questions may arise about how to determine the value of the business, whether it is marital or non-marital property, and how it should be divided in a fair and equitable manner. An accurate business valuation will be essential, and the decisions made about property division can have long-term financial consequences. By working with an attorney who understands both divorce law and business valuation practices, a person can take steps to protect their financial interests.

At A. Traub & Associates, we work with clients in Glen Ellyn to address business interests during the divorce process. Our legal team works with experienced forensic accountants, valuation professionals, and financial analysts to determine fair and defensible valuations for our clients' businesses. We provide guidance on the legal options available while also addressing tax consequences, liquidity concerns, and the impact of ongoing business operations, all of which may influence the overall divorce settlement.

Our goal is to safeguard the financial future of our clients while minimizing disruptions to their business interests. Whether our client is a business owner, an equal partner in a business, or the spouse of a business owner, we will provide the representation needed to help them achieve a positive outcome to their divorce.

Determining the Value of a Business

Business valuation is a highly technical process, and in the context of divorce, it may involve competing opinions from each party's financial experts. The valuation process must consider both tangible and intangible components of a business, as well as external factors that may influence market value.

Common business valuation methods include:

• Asset-Based Approach: This method calculates the value of a business based on the total value of its assets minus its liabilities. It may be used for companies with significant physical assets or when the business is being dissolved.
• Income Approach: This approach evaluates the present value of the business based on expected future income. It is commonly used for ongoing businesses with predictable income streams.
• Market Approach: This method compares the business to similar businesses that have been sold recently, using industry-specific data to determine fair market value. It may be used when a business will be sold during a divorce.

Valuation can be influenced by numerous factors, including the type of business entity, the industry, the business's earnings history and financial health, customer contracts and vendor relationships, intellectual property, the level of personal goodwill attributed to the owner, and partnership or shareholder agreements that may place restrictions on transferring ownership. Our lawyers will ensure that all relevant information is considered during a valuation, helping to determine a figure that is both accurate and fair.

Options for Dividing Business Interests in Divorce

Once a business is valued, a couple will need to determine how to divide that value as part of their overall property settlement. There are several possible options, and the nature of the business and the financial goals of both spouses may play a role in the outcome. Our lawyers can provide guidance on whether ownership issues may be resolved through:

• Buyout: One spouse may buy out the other's interest in the business, either through a cash payment or by offsetting the value with other marital assets. This option may allow the business to continue operating without disruption.
• Structured Settlements: Instead of a lump-sum payment, the buyout may be structured over time through installment payments. This may be an option if liquidity is limited.
• Co-Ownership: A couple may agree to own a business together after their divorce. This may be preferable if they have both played active roles in the business's operation. This arrangement requires a high level of cooperation.
• Sell the Business: If neither spouse wishes to retain ownership of the business, it may be sold, and the proceeds may be divided.

Financial Concerns in High Net Worth Divorces Involving Businesses

Divorces involving business ownership are rarely straightforward. There may be concerns about hidden income, unreported assets, or attempts to devalue the business intentionally during the divorce process. In a high net worth divorce, these risks can be even more pronounced due to the complexity of a couple's financial holdings and the significant stakes involved.

Our attorneys understand the legal strategies that may be used to uncover complete financial information related to a business or other assets. We understand how Illinois courts view business ownership in the context of property division, and we can address potential legal disputes that may arise. We can help address situations such as:

• A business started during a couple's marriage
• A premarital business that increased in value during a couple's marriage
• A family business that serves as the primary source of household income
• Concerns about mismanagement or concealment of assets
• A spouse who is entirely dependent on the other for financial support

Our attorneys work to ensure that business assets are treated fairly and that our clients can walk away from divorce with their financial stability intact.

Contact Our Glen Ellyn, IL Business Asset Division Attorneys

The attorneys at A. Traub & Associates provide experienced legal guidance to clients who need to address issues related to business valuations and the division of complex assets. We help our clients protect their financial interests while working toward solutions that will preserve the value of their hard-earned assets. To learn more about how we can help with business division, contact our Glen Ellyn divorce and business asset division lawyers at 630-426-0196 and arrange a consultation.