Divorce and Business Ownership: What Every Entrepreneur Needs to Know

Divorce is never simple — but when one or both spouses own a business, the process becomes even more complex. A business isn’t just a source of income; it’s considered an asset, and in Illinois divorce, marital assets are subject to division.

Business Valuation in Divorce

Before a business can be divided, it must be properly valued. This often involves:

• Reviewing financial statements and tax returns

• Assessing goodwill and market position

• Considering future earning potential

Courts typically rely on experts — accountants, forensic evaluators, or appraisers — to determine an accurate value.

Division of Business Interests

Once valued, the business may be:

• Divided: Shares or interests split between spouses

• Bought Out: One spouse buys out the other’s share

• Offset: One spouse keeps the business, while the other receives a greater share of other marital assets

The method depends on the couple’s finances, contributions, and long-term goals.

Contributions Matter

Even if only one spouse was actively running the business, the other may still have a claim. Courts consider direct and indirect contributions — from financial investment to supporting the household while the business grew.

Protecting Your Business

The best time to protect a business is before divorce is ever on the table. Prenuptial and postnuptial agreements can carve out protections for ownership. But even after divorce proceedings begin, careful legal strategy can safeguard the company you’ve built.

Final Thoughts

If you’re a business owner facing divorce, don’t leave your livelihood to chance. With the right legal counsel, you can navigate the process strategically, ensuring both compliance with the law and protection of what you’ve built.

Clear answers. No noise. Just the law — made simple.