The typical Illinois business owner often spends considerable time and effort establishing and maintaining his or her business. In some cases, the individual is the only family member involved; in other cases, the spouse and even the children become involved in the business. Regardless of family involvement, when the business owner becomes involved in a high asset divorce, the business can become a part of the process.
When one or both individuals own a business, it is likely that at least part of the business will be considered as a marital asset. Yet, it usually does not make sense to simply sell or divide the business. It is often necessary to place a value on the part of the business that is considered a marital asset and then work from there.
The first step in this process is to obtain a current valuation of the business. There are several different approaches that can be taken. The most appropriate one depends upon the type of business. In many instances, each party will want to have a valuation completed by an outside party.
As a part of this valuation, the individual establishing value will need access to the business itself and its records. In addition to reviewing current assets and establishing a present value of the business, this individual will also want to analyze records to make sure that the reported asset, expenses and liabilities are accurate. If such interests are over or underreported, this can have a significant impact on the valuation.
Business interests are often part of a high asset divorce. As the Illinois couple attempts to divide assets, it may be necessary to take such interests into account. In addition to business and financial experts, an experienced attorney can assist the individual is determining what is in his or her best interest.
Source: wealthmanagement.com, "Three Pressing Issues For Business Owners Going Through a Divorce", Mark S. Gottlieb, Jan. 30, 2018