What Business Owners Should Know About the Divorce Process

 Posted on August 31, 2025 in Property Division

Divorce is already a stressful ordeal, but divorcing as a business owner can come with even higher stakes. With a business on the line, it is no stretch to suggest that your future livelihood could depend on your final divorce decree. To mitigate risk during asset division, consider seeking out a St. Charles, IL divorce lawyer.

At Shaw Sanders, P.C., we have years of experience handling divorces on behalf of our clients, including divorces involving private practices or family businesses. Our firm can inform you of your options throughout your case and protect your business interests.

Your Business Growth Could Be Considered a Marital Asset

If you started your business before the marriage, you might assume that it will not be divided during your divorce. However, the division of assets may be more nuanced than that. 

A business established prior to your marriage will likely be considered your separate property, but if your spouse helped the business grow during the marriage, he or she may be entitled to some of your business interests. This can happen more easily than you think, since all income gained during the marriage is considered marital property (750 ILCS 5/503).

A marital agreement could specify that business interests will not be considered marital property. That being said, remember that a judge can decline to enforce a marital agreement if it is unconscionable.

Different Ways of Valuing a Business in a Divorce

If your business or business interests are considered a marital asset, it will be subject to division. Before the courts can divide a business, it must be accurately valued. This may be more complicated than you think, as there are multiple ways to estimate a business’s value. The three most commonly used methods involve:

• Looking at the business’s potential to generate revenue

• Adding up the business’s assets, minus its liabilities

• Comparing the recent sales of similar businesses

Each approach is likely to result in a different estimate for the value of your business. At Shaw Sanders, P.C., we work with financial professionals who can help determine the optimal method for your business valuation.

Litigation Can Interrupt Business Operations

Some couples use litigation as a way to resolve contentious divorce issues like property division. Though it may seem appealing to argue your case directly to a judge, litigation is not without its downsides. Consider that litigation is a lengthy and often costly process. Your scheduled court dates might interfere with your ability to run your business, and the legal fees could reduce your working capital. 

If you are open to other methods of dispute resolution, you could get through your divorce with minimal interruption to your daily operations. Attorney Matt Shaw is a certified mediator with experience helping couples come to creative solutions outside of court.

Contact a St. Charles, IL Family Law Attorney

At Shaw Sanders, P.C., we are highly familiar with the divorce process and what it may entail for your business. Call our Kane County, IL business divorce lawyers at 630-584-5550 to arrange a free consultation.