Part of the divorce process often involves property division, which can become complex in high-asset situations. At Lois Kulinsky & Associates, Ltd., we know that valuing a business owned by one or both spouses is an important part of determining marital assets. Our goal is to help ascertain the full and fair value of a company.
As an equitable division state, Illinois demands that each spouse receive a fair share of any marital property. That may include business assets, especially when the company was established after the marriage started. Further, establishing the value of a company can also play a role in any support payments that may be owed.
As a recent report in Forbes magazine notes, it is common for spouses to become defensive, especially when it comes to property division. If just one person owns the business, he or she may try to minimize potential losses by devaluing the company. There are several signs this may be happening, including the following:
- The business pays for the spouse’s personal expenses.
- The spouse claims the business is in trouble yet spending habits have not changed.
- The spouse is reluctant to hand over financial statements.
To establish the true value of a company, our team at Lois Kulinsky & Associates, Ltd., relies on a team of forensic accountants and business valuation experts. The process includes looking at both tangible and intangible assets as well as finding unreported income.
A divorce does not necessarily mean a business has to close or be sold. It may, however, mean that both spouses are entitled to a fair share of the associated assets. For more information on this topic, please visit our page on business valuations.