Divorce is never easy, but things can get even more complicated when your business is involved. Many businesses are considered martial property. This means that the business needs to be addressed during the asset division portion of the divorce. Valuing and dividing business assets is often complex and contentious. Here are four tips to keep in mind when going through a divorce in DuPage County with a business:
1. Understand the Tax Implications
Understanding how your taxes may be affected by your divorce, especially if you own a business, is essential. You may want to speak with an accountant or tax advisor to ensure you take all the necessary steps to minimize your tax burden.
2. Create a Financial Plan
Divorce brings along financial stress, and it is vital to make sure that your finances are in order. Before making any decisions, create a comprehensive financial plan and assess what assets need to be divided. This should include any investments or business interests you share with your spouse. Typically, property that a spouse acquired during a marriage is marital property. Businesses established during the marriage are considered part of the marital estate unless they are excluded through a valid premarital agreement or postnuptial agreement.
Divorcing spouses may be able to negotiate a property division agreement with help from their attorneys. If they cannot reach an agreement, the court will divide assets equitably based on Illinois law. Some divorcing couples assign all business assets to one spouse and compensate the other spouse with other marital assets such as real estate or vehicles. Other couples decide to sell the business and split the profits. Family business owners sometimes choose to keep the business intact and continue running the business jointly after the divorce.
3. Value Your Assets Accurately
Ensure business assets are adequately valued before dividing them among you and your spouse. This will ensure that each party receives their fair share during the divorce process. Also, be sure to consider the value of any intellectual property or other assets that may be associated with the business.
4. Have an Attorney Present
Having an experienced attorney present throughout the divorce process is essential. Your attorney can advise you on your rights and help ensure that all agreements are fair and equitable.
Contact a DuPage County Divorce Attorney for Business Owners
At Calabrese Associates, PC, we understand the complexities of going through a divorce with a business. Our Naperville divorce lawyers are here to provide guidance and protect your interests. If you need assistance with your divorce, contact us today. Call Calabrese Associates, P.C. at 630-393-3111, and we will handle your case together.