Tips for Success When Divorcing as an Illinois Business Owner

 Posted on December 08,2020 in Divorce

In any divorce, dividing the marital assets can be a stressful process. Many spouses focus on the large and obvious assets, such as the marital home or the vehicles. Couples may forget that there are numerous other assets that should be considered when coming to an agreement on property division, including bank accounts, investment accounts, retirement funds, and even everything that you own inside your home. Property division can be complicated, but things can become even more complicated when a business is involved. If you are getting a divorce and you are a business owner in Illinois, it is important that you speak with an Illinois divorce attorney about your case.

Considerations to Keep in Mind About Divorce and Your Business

When you are a small business owner, your business is likely one of the most important and valuable assets that you own. As such, you are going to want to be sure that you do everything in your power to ensure a fair distribution of the business. There are also certain things that you should keep in mind about the structure of your business and how day-to-day operations will be run after your divorce is final. Here are a few tips to keep in mind when divorcing as a business owner:

• Hire a neutral, outside professional to value your business. To best allocate ownership of your business and provide you and your spouse with an equal distribution of assets, you will need to determine how much your business is worth. This can be a point of contention between spouses, so it is best to hire an outside appraiser or business evaluator to come up with a fair market figure.

• Make sure you are paying yourself a fair salary for positions comparable to your own. If you are taking home a smaller salary than you could be taking, your spouse may be able to argue that the family did not get to benefit from the profits of the business as much as they should have. Your spouse may try to use this as a reason as to why he or she deserves more of the business’s assets.

• Determine what you want to do with your business. There are typically three ways to deal with the business, which are much like the options you have when dealing with the family home: co-ownership, buying out the other spouse, or selling the business. In many cases, selling the business is never the preferred option, but buying out your spouse or co-owning the business may not be feasible. You should work with your divorce lawyer and your financial adviser to determine your best option.

Our Kendall County Divorce Attorney Can Help

The property division phase of a divorce can be one of the most stressful portions of the entire process, especially if you are a business owner. At the Law Office of Matthew M. Williams, P.C., our team has the experience needed to help you divide your complex assets, such as a family-owned business, corporation, partnership, or even a joint venture. To schedule a private consultation with our knowledgeable Yorkville asset division lawyer, call our office today at 630-409-8184.

Sources:

https://www.jdsupra.com/legalnews/seven-tips-if-getting-divorced-and-you-30522/

https://www.entrepreneur.com/article/220124