DuPage County Family Owned Businesses in Divorce Attorneys
Skilled Guidance for Business Valuations in Divorce in Lisle, Naperville and Downers Grove
In complex divorces, often one of the largest assets that must be addressed is a family owned business. To ensure a fair and equitable division of property, divorcing spouses who own a business together must receive an accurate valuation of their business. However, because of the unique dynamics involved, it can be quite difficult to place a value on a family owned or closely held business. If you are facing a divorce that involves complex business assets, it is essential to have skilled legal counsel in your corner.
At Momkus McCluskey LLC, our legal team has in-depth experience in a wide range of practice areas, including divorce and family law; business law; estate, trusts, and asset protection planning; commercial and civil litigation; and appellate practice. Our immense knowledge of commercial transactions and contracts, business disputes, partnership and shareholder disputes, and other related commercial litigation matters gives our clients a decided advantage when it comes to family owned businesses in divorce. Our attorneys are responsive, compassionate and skilled negotiators that aggressively advocate for your best interest.
Evaluating Business Assets During a Divorce
There are several considerations that must be taken into account when valuing family owned businesses in divorce. It must first be determined if part or all of the business is considered marital property. This determination is based on when the business was established and how it was funded during the marriage. In general, if the business already existed before the marriage began it can be considered non-marital; though there may be other factors that cause the courts to change that classification. Also, it is important to note that even if only one spouse has worked in the business, the other spouse may still be entitled to compensation if the business was established after the marriage began.
If it is determined that the business is marital property, the spouses often do not want to continue working with each other. For this reason, it is usually necessary for one spouse to keep the business while the other is fairly compensated. To ensure an accurate business valuation, several factors must be looked at. For example, there may be certain buy/sell agreements between owners that make it more difficult to sell shares, thus diminishing the value of the business. Another important factor is the tax consequences involved with family owned businesses in divorce. A thorough examination of the tax implications can prevent any surprises in this regard.
There are times when divorcing spouses attempt to lower the business valuation through accounting tricks; such as hiding cash in separate bank accounts, paying phantom employees or contractors, or deferring certain business income until after the divorce is finalized. In such cases, a thorough investigation is needed to ensure that all the facts are on the table.
At Momkus McCluskey LLC, we are familiar with all the issues around family owned businesses in divorce. Our legal team develops a comprehensive strategy that takes all factors into account to ensure that your interests are protected and you come out of your divorce in the best possible financial position. Contact us today at 630-434-0400 for a consultation. We provide advice and counsel from our team of skilled divorce attorneys in DuPage County, Lisle, Naperville and Downers Grove.