What Does a Small Business Owner Need to Know Before Getting Divorced? 

 Posted on June 13, 2023 in Divorce

In Illinois, when a small business owner goes through a divorce, it can be a complicated and stressful situation. This is because a divorce involves dividing assets, and a small business is often a significant asset that must be adequately accounted for during the process. If you are a small business owner getting divorced, contact a divorce attorney and allow them to guide you through the process of dividing your property and what it may or may not mean for your business. 

This is What Business Owners Need to Know

Here are some things that business owners need to do and be aware of as they approach their divorce:

• Determine the value of the business – The first thing that needs to be done is to determine the value of the business. This is done by conducting a business valuation, which considers factors such as revenue, assets, and liabilities. It is essential during this time to have the help of a qualified business valuer during this process to ensure that the value is determined accurately. 

• Understand Illinois divorce laws – As you may know, property is split equitably in Illinois divorces. This does not mean 50/50, but rather a division that is based on a variety of factors. Small business owners need to understand how the state’s divorce laws will impact the division of assets during their divorce.

• Property document business transactions – It is essential to document business transactions during the divorce process properly. Small business owners should keep accurate records of financial transactions and related documents, including contracts and correspondence. This will help to ensure that the business is properly valued and that its value is correctly represented during the division of assets process.

• Consider negotiating a buyout – In some cases, it may be possible to negotiate a buyout of the other spouse’s interest in the business. This could involve one spouse buying out the other’s share of the business, allowing the business to continue as usual. This can be a complex process, but it is often preferable to a complete division of the business. 

Contact a DuPage County Divorce Attorney

Generally, marital assets are considered marital if they have been obtained during the marriage. If you are unsure whether your business is a marital or non-marital asset, your attorney will be able to help you determine this. Contact the esteemed Wheaton divorce lawyers with The Stogsdill Law Firm, P.C. for legal representation in your divorce case. Call 630-462-9500 for a private consultation. 

Source - https://www.investopedia.com/terms/b/business-valuation.asp