Introduction
In an Illinois divorce, dividing marital assets can be a complex and contentious process. This is particularly true when it comes to business property, as it often involves complex valuations and ownership structures. This article will provide a general overview of how business property is divided in an Illinois divorce.
Marital vs. Non-Marital Property
In Illinois, only marital property is subject to division in a divorce. This includes any property acquired by either spouse during the course of the marriage, with few exceptions. Non-marital property, on the other hand, is property that was acquired by one spouse prior to the marriage or via gift or inheritance during the marriage.
Valuing Business Property
When it comes to business property, it is often necessary to hire a professional appraiser to determine its value. This is particularly true if the business is closely held or has complex ownership structures. Once the value has been determined, the court will typically allocate a percentage of the asset to each spouse based on various factors, such as their respective contributions to the business.
Equitable Distribution
Illinois is an equitable distribution state, which means that marital property is divided fairly, but not necessarily equally, between the spouses. When dividing business property, the court will take into account a number of factors, including the length of the marriage, each spouse’s financial situation, and the contribution of each spouse to the business.
Buyouts and Other Options
In some cases, one spouse may wish to retain ownership of the business. This can be accomplished through a buyout or other arrangement. The court may also order the sale of the business and division of the proceeds. Other options may include dividing the ownership and management of the business between the spouses, or giving one spouse the right to purchase the other spouse’s interest in the business.
Conclusion
Dividing business property in an Illinois divorce can be a complex and nuanced process. It is important to work with an experienced divorce attorney who understands the nuances of business valuations and ownership structures. With the right legal guidance, it is possible to achieve a fair and equitable distribution of marital assets.