It depends on when and how the business was formed. A company started during the marriage is usually marital property. A business you owned before marriage may be separate, though any growth in value during the marriage could still be subject to division, especially if your spouse contributed to that growth.
Business Owners & Divorce
Handling Business Owners & Divorce Cases
Few things complicate the division of marital property, which is arguably one of the most challenging divorce terms, more than business ownership. If you are facing a divorce in which a business is involved, don’t delay consulting with a dedicated Chicago divorce attorney who has extensive experience successfully handling complicated cases like yours. At Hammer Serna & Quinn, LLC, we represent business owners and their spouses through some of the most demanding divorce cases in Illinois. Contact our divorce attorney today to get started.
Who We Help
Business owners come to us with a wide range of concerns. At Hammer Serna & Quinn, LLC, we understand that owning a business while going through a divorce is confusing and difficult. We regularly assist clients in situations such as these:
- Owners worried a division could force a sale or disrupt operations. You fear that splitting the value of the business might interrupt the company, harm your livelihood, or force a sale you never wanted. We help you protect the company while addressing your spouse’s potential interest.
- Spouses who disagree on what the business is worth. One spouse believes the company is being overvalued, while the other worries it is being undervalued. We help pursue an accurate valuation that accounts for assets, debts, cash flow, and goodwill.
- Premarital businesses that grew during the marriage. The business existed before you married but grew while you were together. You may be uncertain whether marital labor, investments, or other contributions created value that must be addressed. We help sort out what belongs to the marriage and what does not.
- Spouses who both hold an ownership interest. You both have a stake in the company, yet staying business partners after divorce may not be realistic. We help you weigh whether one spouse keeps the company, both remain owners, or the business is sold.
- Valuable businesses with limited available cash. The company has real worth but may not have enough cash on hand to pay the other spouse right away. We help structure arrangements using other assets, scheduled payments, or financing that avoids an unnecessary sale.
- Cases where the numbers do not add up. Reported income does not match the family’s lifestyle, or money seems to move through business accounts, related companies, or unusual expenses. We help pursue full financial disclosure before any settlement is signed.
No matter your situation, our team at Hammer Serna & Quinn, LLC will listen to you, help you develop a strategy, and stand by your side throughout your case. Contact us today to see how we can assist you.
The Business Owners Divorce Process in Illinois
Illinois follows the principle of equitable distribution, meaning that marital property is divided fairly, though not always equally. While no case is the same, the process generally consists of:
The Division of Marital Property
In Illinois, the division of marital property upon divorce must be equitable, or fair, in relation to a wide range of factors. Anything that you, your spouse, or both of you together came to own while you were married is included in this division. While your separate assets will remain your own, they must be kept separate over the course of your marriage.
If you came to own a business while you were married, it’s marital property that will need to be addressed in the division of your marital property. Even if one of you owned the business prior to marriage and kept it scrupulously separate while you were married, any increase in the value of the business belongs to both of you and must be addressed upon divorce.
The Business’s Value
In order to address the division of a business’s value, you’ll need a valuation that you are both able to agree upon. The fact is that valuing a business is a complicated matter that can be addressed in a range of ways, and it isn’t uncommon for divorcing spouses to disagree on the final value. It’s important to note that the matter doesn’t necessarily end there.
Your business is almost certainly your highest asset, which can make buying out one spouse’s interest in it exceptionally challenging. This is not to mention the fact that selling a business in order to address the division of marital property can leave both of you with considerably less than your share of its actual worth due to the vagaries of selling a business as a matter of financial need rather than well-considered strategy.
The Complications Don’t End There
The matter of your business can become even more complicated from here. Consider all the following:
- If you both work at the business, one of you will likely need to walk away from your livelihood, which can make taking the next steps into your financial future more difficult.
- The tax implications of business ownership are considerable and must be taken into careful consideration in terms of your divorce.
- A business can make it far easier to hide assets or complicate them to the point that they’re difficult to address fairly.
In other words, having professional legal counsel on your side is paramount. Our team will walk you through every step, so you can have peace of mind.
Why Choose Us
Here at Hammer Serna & Quinn, LLC, we understand how important it is to turn to a reliable attorney during this difficult time. Choosing the right attorney can shape the entire outcome of your case. Here is what sets our firm apart:
- We understand business, not just divorce. We read financial statements, question valuations, and spot issues that a general practice attorney might miss.
- We build a strategy around your priorities. Some clients want to keep the company at all costs. Others want a clean break with fair value. We shape our approach to what matters most to you.
- We work with trusted professionals. When a case calls for a valuation analyst or forensic accountant, we bring in respected voices whose findings hold up under scrutiny.
- We prepare every case for court. We aim to resolve cases efficiently, yet we prepare each one as if it may go to trial. That readiness strengthens your position at the negotiating table.
- We keep communication clear. You will hear from us, understand your choices, and never feel left in the dark about where your case stands.
Our approach prioritizes clarity, readiness, and trusted expertise to guide you through this challenging time. By focusing on your unique situation, we work diligently to protect your interests and achieve resolutions that truly support your future.
Make the Call to an Experienced Chicago Divorce Lawyer Today
Business ownership can complicate your divorce significantly, but the capable Chicago divorce attorneys at Hammer Serna & Quinn have an impressive array of experience guiding challenging cases like yours toward advantageous outcomes that protect our clients’ financial rights and best interests. For more information, please don’t hesitate to contact us today.
FAQs About Business Owners & Divorce
Will I have to sell my business to divide its value?
Not necessarily. Many owners keep their companies by offsetting the value with other assets, arranging a buyout, or setting up structured payments over time. A sale is only one option among several, and it’s often the last resort.
How is a business valued during divorce?
Valuation usually considers assets, debts, cash flow, and goodwill. A qualified valuation professional may review financial records, tax returns, and market conditions to reach a supported figure. When each side hires its own analyst, the numbers can differ, which is why solid documentation matters.
What if I think my spouse is hiding income through the business?
This is a common concern. If reported income does not match your family’s lifestyle, or money seems to flow through unusual accounts or related companies, a forensic accountant can trace the funds and uncover the full financial picture before any agreement is reached.
Can my spouse claim part of a business I owned before we married?
Possibly. While the business itself may be separate property, any increase in its value during the marriage could be treated as marital, particularly if marital funds or your spouse’s labor helped that growth. We can help sort out which portion, if any, is subject to division.
Do we have to remain business partners after the divorce?
Rarely does that arrangement work well. Most couples choose to have one spouse retain the company, divide the value through other means, or sell the business. We help you weigh which option fits your circumstances.
How long does a business owner divorce take in Illinois?
Timelines vary based on the size of the business, the level of disagreement, and whether the case settles or goes to trial. Cases involving detailed valuations or financial disputes generally take longer than simpler divorces. We will give you a realistic estimate once we understand your situation.
Get In Touch
Call or email Hammer Serna & Quinn, LLC today to schedule a consultation.
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