Division of Business Assets
When a marriage ends, the marital estate needs to be divided. In many cases, the property of the spouses includes business assets, which can be complicated to evaluate and distribute. At the Law Offices of Nick Kulagin, our family law lawyers are committed to assisting people in DuPage and Kane Counties with protecting their families, their homes, and their businesses. With 15 years of experience, our Wheaton attorneys understand the steps that you can take to secure your financial future after a divorce.Determining the Division of Business Assets
The division of business assets in a divorce proceeding may require working closely with business valuation experts, accountants, and other financial professionals who can help value the enterprise accurately. If you believe that your spouse may be underreporting or concealing the business’ true value, we can use forensic accountants and other experts to search for hidden assets and more accurately ascertain its true worth. The accurate valuation of a business is critical because it helps determine the financial share of a divorce settlement.
Illinois is an equitable distribution state, which means that all marital property must be divided fairly at the time of the divorce. What is considered fair will depend on a variety of factors, including each spouse’s earning potential and contributions to the business. Generally, marital property encompasses the assets and debts that accumulated over the course of the marriage. It is important to note that even when a business was started prior to a marriage, it may be considered marital property if certain conditions are met. In fact, even a family business may be deemed marital property if the business existed before the marriage and was handed down to a married child through restricted stock or certain other forms of conveyances.
If a business is considered marital property, it will be subject to division at the time of the divorce. If the spouses are amicable, they may wish to run their business together even after the divorce. In such instances, each partner’s interest in the business must be accurately determined and codified in a new contract reflecting their stakes as individual assets, rather than marital assets. If you and your ex-spouse will not co-own and run the business together, you can sell the business and split the proceeds, or one spouse can buy out the other’s interest.
Some of the factors that may arise in valuing and dividing business assets include inventory, trade secrets and other intellectual property, commercial real estate, business loans and debts, the profits and ongoing viability of the business, and the tax consequences of a division or sale.Discuss a Divorce Proceeding in DuPage or Kane County with an Experienced Lawyer
When it comes to the division of business assets, it is critical to consult a knowledgeable divorce attorney who understands this area of law. DuPage and Kane County residents can enlist the Law Offices of Nick Kulagin to help them protect their financial security. We can create a strategy tailored to your needs and goals. Our attorneys also represent people in Naperville, Hoffman Estates, Mount Prospect, and Oak Park, among other communities. Call us at 630-480-6399 or contact us online to set up a free initial consultation.