When a couple splits or parts ways, one of the most complex parts of the divorce process is the asset division piece. If a family business is involved, this will make the property division component that more involved.
As part of the divorce process, many assets and liabilities will have to be divided between the parties, a business is no different. There are a few factors that will determine whether the business interest will be considered separate or marital. If the business interest was acquired during the marriage, with joint funds, it is considered marital property, and the value should be shared by the spouses equally. If the business interest was owned prior to the date of marriage, or acquired with separate funds, it should be considered separate property. Determining whether a business interest is separate or marital property can be complicated.
How To Value A Business?
Coomon ways to determine the value of a business are:
- Assets – assets minus liabilities = value
- Market – compare the business to similar businesses that have been
- Income – predicts cash flow and profits in calculating the value of the business
Who Values A Business?
To effectively identify and value significant martial assets, we consult with forensic and appraisal experts in a wide range of disciplines, including real estate, business, accounting, pension and trust administration, taxation and more. The general rule in Illinois is that if spouses cannot agree on the division of a business, the court may have the right to divide it if it is considered marital property.