Business Valuation Concerns During a Divorce in DuPage County, Illinois

 Posted on January 10,2023 in DuPage County Divorce Attorneys

Going through a divorce can be a difficult and emotional time, and one of the major areas of concern is often the division of assets. If you or your spouse owns a business, the valuation of that business can be a complex and contentious issue. Here are some key things to consider when it comes to business valuation during a divorce in DuPage County, Illinois.

Why Is Business Valuation Important In A Divorce?

When a couple gets divorced, their assets must be divided between them. This includes any businesses that either spouse owns. In order to determine how to divide the business, it must first be valued. The valuation of the business will help determine what each spouse's share of the business is worth, and therefore how it should be divided.

What Factors Are Considered In Business Valuation?

There are several factors that are taken into consideration when valuing a business for divorce purposes. Some of the most common include:

• Revenue and profitability - The financial performance of the business is a key factor in determining its value. This includes factors such as revenue, expenses, and net profit.

• Market conditions - The state of the economy and the market in which the business operates can also impact its value. For example, a business that is performing well in a growing market may be worth more than one that is struggling in a declining market.

• Asset value - The value of the business's physical assets, such as equipment and real estate, will also be taken into account.

• Intellectual property - If the business owns any patents, trademarks, or other intellectual property, the value of these assets will also be considered.

• Goodwill - Goodwill is the intangible value of a business, and can be based on things like the business's reputation, customer base, and relationships with suppliers.

How Is The Business Valued In A Divorce?

There are several methods that can be used to value a business for divorce purposes. The method chosen will depend on the specific circumstances of the business and the couple's needs. Some common methods include:

• Market approach - This method involves comparing the business to similar businesses that have been sold in the market. This can help determine the business's value based on what others are willing to pay for similar businesses.

• Income approach - This method involves projecting the future financial performance of the business and then discounting that future income to its present value. This can help determine the value of the business based on its potential future earnings.

• Asset approach - This method involves valuing the business based on the value of its physical assets. This can be a good method for businesses that have a lot of tangible assets, such as manufacturing or real estate businesses.

No matter which method is used, it is important to work with a qualified business valuation professional to ensure that the valuation is accurate and fair. This can help ensure that the business is divided fairly between the spouses and that both parties are able to move forward with their lives after the divorce.

Contact a Wheaton, IL Business Valuation Divorce Lawyer

Business valuation is an important consideration during a divorce. It is crucial to work with experienced Dupage County family law attorneys to ensure that the valuation is accurate and fair, and that the business is divided in a way that is fair to both parties. By understanding the key factors that are considered in business valuation and the different methods that can be used, you can better navigate this complex process and move forward with your life after the divorce. Please get in touch with our knowledgeable family law attorneys at the Andrew Cores Family Law Group if you have a case. We can guide you through the process and assist you in defending your rights. For a free consultation, contact us at 630-871-1002.

 

Source: 

https://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=2273