Protecting Your Family And Future

Business Valuation In An Illinois Divorce

Last updated on February 27, 2025

Whether you are a sole proprietor or own a company with partners, determining the value of your business is critical in an Illinois divorce. Business valuation impacts asset division, spousal support and long-term financial stability. This process can be intricate, and working with a skilled divorce attorney is essential to protect your financial interests.

At Blacha Law Office, LLC, we have the experience needed to handle business valuation matters in divorce cases. Founding attorney Monika Blacha has decades of litigation and mediation experience dating back to 1999. Based in Naperville and Joliet, we assist clients throughout DuPage, Will, Kane and Kendall counties in handling complex divorce cases involving business assets.

How Does A Business Get Divided In An Illinois Divorce?

Illinois follows equitable distribution laws, meaning assets are divided fairly, though not always equally. When a business is considered marital property, its value must be assessed before determining how it will be divided.

A court may allocate ownership to one spouse while compensating the other through alternative assets or financial settlements.

Is A Business Marital Or Nonmarital In An Illinois Divorce?

A business may be classified as marital or nonmarital property, depending on when and how it was established.

If the business was founded during the marriage, it is likely marital property. However, if one spouse owned the business before marriage and did not commingle funds or involve the other spouse, it may remain nonmarital property.

How Is The Value Of A Business Calculated In A Divorce?

Business valuation requires a detailed analysis of financial records, assets, debts and market trends. Common valuation methods include:

Income approach: Evaluates earnings and projected future income
Market approach: Compares similar businesses recently sold
Asset approach: Assesses tangible and intangible business assets

Attorneys often work with forensic accountants and valuation experts to determine an accurate business worth.

How To Protect Your Business Assets In A Divorce

If you own a business, taking steps to protect your assets before marriage can be beneficial. A premarital agreement can specify how the business will be treated in a divorce, reducing disputes.

Other options include buy-sell agreements or structuring the business to limit ownership rights in divorce scenarios. Our lawyers can help protect your business interests early on.