Rolling Meadows Business Valuation Attorney

Rolling Meadows Divorce Attorney Handling Business Valuations in Illinois

During the divorce process, couples may need to address a variety of complex concerns related to property division. For business owners, decisions about the division of marital assets can affect their ability to continue owning and operating their businesses, and they will need to understand the options that may be available. Business valuation is one of the most important parts of the property division process, and it can not only help determine how matters related to a family business will be handled, but it can also inform other aspects of a divorce. Understanding the procedures that will be followed during a business valuation and the options for addressing business interests in a divorce is crucial for business owners and their spouses.

Ann O’Connell Law, Ltd. provides experienced representation for divorcing spouses, helping them address complex financial issues and ensuring that they can protect their interests. If you or your spouse are business owners, we can help you determine the best approach to take during your divorce, and we will work to negotiate agreements that will allow for your ongoing financial success.

Methods for Business Valuation in Divorce

Before decisions can be made about the division of marital property, it will be necessary to fully understand the value of a business that spouses own together or that one spouse owns separately. Several methods can be employed to value a business during a divorce, including:

• Asset-based approach: This method calculates the value of a business by determining the total value of the assets it owns and subtracting the value of its liabilities. While this method is straightforward, it may not fully capture the present and future value of a business.
• Market approach: This approach determines a business's value by comparing it to similar companies that have been sold recently. This method relies on market data, which may not always be available.
• Income approach: This method projects a business's future income, considering the business's potential for growth and determining the ongoing value that will be provided to the owner. This approach may be particularly useful in cases involving profitable businesses with steady cash flows.

Addressing Business Ownership in Divorce

When a business is part of a divorce settlement, several options may be available for addressing ownership:

• Buy-out: One spouse may buy the other's interest in the business, allowing for sole ownership post-divorce. This requires a clear valuation and a mutually agreeable buy-out scheme.
• Co-ownership: Ex-spouses may choose to continue co-owning the business as partners. This arrangement will require ongoing cooperation, and a partnership agreement can ensure that both parties will be able to agree on issues such as management, decision-making, and profit distribution.
• Selling the business: Spouses may decide to sell a family business and divide the proceeds. While this provides a clean break, it requires agreement on the sale process and how to handle offers.
• Compensation through other assets: Sometimes, a spouse who wishes to be the sole owner of a business can compensate the other spouse with other marital assets of an equivalent value. This can ensure that business operations will not be disrupted, and it can provide the other spouse with sufficient financial resources to meet their ongoing needs.

Professional Help With Business Valuation and Division

When addressing issues related to businesses in a divorce, professional guidance may be needed. At Ann O’Connell Law, Ltd., we can work with financial experts to ensure that issues related to a business will be handled correctly. We can assist with:

• Valuation: We can collaborate with forensic accountants or valuation experts to determine a business's fair market value, ensuring that it can be divided alongside other marital assets.
• Strategic planning: We work with our clients to determine the best approach to dividing business interests, ensuring that they consider the immediate and long-term implications of the decisions made.
• Negotiation and advocacy: We can negotiate a fair and equitable settlement, and if necessary, we can advocate for our client's interests in court.
• Documentation and legal agreement: To ensure that the terms of a divorce settlement can carried out correctly, we can draft and review the necessary legal documents to transfer or sell assets.

Contact Our Rolling Meadows, IL Business Valuation Lawyer

Valuing and dividing a family business in an Illinois divorce requires a blend of legal insight and financial acumen. At Ann O’Connell Law, Ltd., our experience in business valuation and complex asset division ensures that our clients can address and resolve these issues successfully. To set up a complimentary consultation and get legal help with business valuation, property division, and other divorce-related matters, contact us at 847-859-6222.