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IL family lawyerTypically, the more complex a divorcing couple's assets, the more complex the property division process will be. Dividing bank accounts and personal property like vehicles and household furniture is often much more straightforward than dividing a small business. First, the business must be classified as either marital or nonmarital property. Next, the business must be properly valued. Divorces involving businesses are often complicated, so getting guidance from an experienced divorce lawyer is crucial.

Is The Business Considered Part of the Marital Estate?

You and your spouse have the option to design your own property division arrangement during divorce. You may be able to negotiate property distribution concerns with help from your prospective attorneys or you may be able to reach an arrangement during family law mediation. If you cannot reach an agreement, the court will intervene and make property division decisions on your behalf. In Illinois, courts make property division decisions based on the theory of “equitable distribution.” Marital property, meaning property acquired by either spouse during the marriage, is divided in an equitable, or fair manner. Nonmarital property includes property acquired before the marriage, gifts, and inheritance. Nonmarital property is not divided and is instead assigned to the spouse who owns the property. If you acquired your business during the marriage, it will most likely be treated as a marital asset. If your business was inherited, received as a gift, or was obtained before you got married, it will likely be classified as nonmarital property.

Valuing a Business During Divorce

If a business is considered a marital asset, the court will use the value of the business during property division decisions. There are several ways to determine the fair market value of a business. The “income approach” to valuing a business involves calculating the present value of the estimated future income from the business. In an “asset approach,” the total value of the business’s assets is divided by the business’s liabilities. Another method for determining the value of your business is the “market approach” which estimates the approximate value by comparing the business to similar businesses that have recently sold. The value of the business will be used to determine how marital property is divided. If one spouse retains ownership of the business, the other spouse will likely be assigned marital property of similar value. Divorcing spouses may also decide to sell the business and then split the proceeds. In some cases, a divorcing couple may even decide to retain joint ownership of the business after divorce.

Contact a Kane County Business Valuation Lawyer

Deciding how to handle a business during divorce can be quite challenging. You may be unsure of what the best option is for your unique situation. For dependable legal guidance regarding property division, business valuation, and more, contact Shaw Family Law, P.C. Call our office at 630-584-5550 today and schedule a consultation with a skilled St. Charles divorce attorney.

 

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IL divorce lawyerWhen two people marry, many of their possessions change from “yours” and “mine” into “ours.” Couples may share a home, vehicles, property, bank accounts, and more. When a married couple gets divorced, deciding which spouse should retain which assets can be quite difficult. There are many factors that can complicate the already complex process of property division. If you are planning to divorce and need help with asset division, contact an experienced family law attorney.

Complex Assets

Illinois couples have the option to make their own decisions regarding the division of the marital estate. However, couples who disagree about asset division may require court intervention. If a couple owns complex or high-value assets, it is likely that the process of property division will be much more involved. Assets which can complicate the property division process include but are not limited to:

  • Family businesses
  • Trusts
  • Stocks, bonds, and other investments
  • inheritances or gifts
  • Real estate
  • Pensions and 401ks
  • Deferred compensation
  • Royalties
  • Executive bonuses
  • Offshore accounts

Duration of Marriage and Age of Spouses

You may be surprised to learn that the divorce rate for people over 50 years of age has doubled since 1990. More and more older Americans are getting divorced. Many individuals over the age of 50 have accumulated a significant amount of money in a term life insurance, 401k plan, or retirement account. They may also be receiving Social Security benefits. The duration of a marriage can influence several aspects of divorce as well including asset division, child custody, child support, spousal maintenance, and more. When a marriage of 20 years or more ends, the process of untangling the spouses’ intertwined financial lives can be especially difficult.

Dissipated Assets

Property or funds which are wasted near the end of a marriage are referred to as “dissipated assets.” Examples of dissipated assets can include funds lost to gambling or drug addiction, money spent on a secret affair, and property which was destroyed by another spouse in an act of retaliation. In order to be considered dissipation, the frivolous spending must be “for the sole benefit of one spouse and for a purpose unrelated to the marriage.” Furthermore, the spending must take place “when the marriage is undergoing an irreconcilable breakdown.” Generally, an “irreconcilable breakdown” refers to the time when a couple stops making attempts at reconciliation. If you and your legal team can prove that your spouse dissipated significant assets, you may be given a larger share of the marital estate to compensate for the lost property or funds.

Contact a St. Charles Property Division Lawyer

If you are getting divorced and have questions about property division, contact Shaw Family Law, P.C. to get the answers you need. Schedule a free, confidential consultation with a knowledgeable Kane County divorce attorney by calling us at 630-584-5550 today.

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