Business Valuation Issues In Your Divorce

Divorce is often viewed as a "family" issue, and of course it impacts you, your ex-spouse and your children profoundly. But if you own a business, either on your own or in partnership with your spouse or family members, your business assets could become part of your divorce case.

At the Law Firm of Debra J. Braselton, P.C., our firm's founding attorney views business valuation as a crucial part of case preparation. She has a trusted network of experts, including business valuation experts, who can provide intelligent analysis of your assets. Our firm can advise you on your options if there is a conflict over this area of your divorce.

A Key Question For Business Valuation In A Divorce: Marital Asset Or Not?

One of the most pressing questions to be answered through business valuation analysis is how much of the business could be considered a marital asset. Illinois follows the principle of equitable distribution in terms of dividing property acquired during the marriage. If your business increased in value during the marriage due to your efforts, the amount of the increase could be considered marital property.

Another issue relevant to business valuation comes when a company has suffered recent losses. IRS regulations state that only the owner of the business may claim a loss. However, it is possible to weigh the benefit of the owner claiming a business loss against other marital assets and the bigger financial picture for both spouses.

Beware Of Asset Misrepresentation

Debra supports collaborative divorce and its team approach under appropriate circumstances. Business valuation can be an area where a party may attempt to misrepresent the value of the business to lower the amount of assets he or she may have to bring to the table. Whether you divorce collaboratively or in litigation, identifying all assets and ascertaining the value of each is critically important.

Our network of financial professionals can use forensic analysis to spot attempts to hide assets or diminish their value.

Talk To A Lawyer About Your Business Asset Questions

Call our offices in Oakbrook Terrace at 630-DIVORCE or 630-261-1222 to consult with us on your case or reach out to us using our online response form. All communications with our office are considered confidential.