Is My Kane County Professional Practice Marital Property?
All marital property needs to be accurately valued and fairly divided before an Illinois divorce can be finalized, and while that may sound straightforward in writing, in reality it can be quite complicated. One type of property that tends to be the most complicated is that of a small business or personal practice.
Professionals spend many years and countless resources obtaining an education and building their careers, and the prospect of having the fruits of those labors divided in a divorce can be devastating. If you are an attorney, doctor, accountant, or another similar professional and own your own practice or share a small business with a business partner, you likely have questions about how your divorce could change the way you do business.
Is a Professional Practice Always Marital Property?
Spouses often opt to protect their professional practices with prenuptial and postnuptial agreements that carefully detail the treatment of said practices in the event of a divorce. But without a legally enforceable contract protecting a practice, the value of a practice that was earned during a marriage is usually marital property and subject to division. This is true whether the practice was started after a couple was already married or whether a spouse owned the practice before the marriage began.
How is the Value of a Professional Practice Determined?
Spouses will likely want to get the help of a professional appraiser to determine the value of a practice. Valuation methods can differ greatly depending on the type of practice; for example, a dental practice, with valuable equipment and hundreds of patients would have to be valued differently from a psychotherapist’s practice in which very little equipment and far fewer patients are involved. Whatever valuation method spouses choose, eventually spouses will have to agree on the value of the business and how to divide its value. This can be done by selling the practice and splitting the value, buying out one spouse’s value with other marital assets, or, when couples cannot decide themselves, entrusting the matter to a court to decide.
Contact a St. Charles, IL Property Division Attorney
Determining what happens to marital property can be a complicated part of any divorce. Having an experienced St. Charles property division attorney with experience and negotiation skills is essential to ensuring your interests are protected during your divorce and well into the future. At Shaw Sanders, P.C., we know how important it is to protect your personal reputation and professional practice. Call us today at 630-584-5550 to schedule a free case review and learn more about how we can help.