How Will The Family Business Impact Asset Division?

In many marriages, family-owned businesses are one of the largest, if not the largest, assets couples have. And like every asset in the marriage, the family-owned business must be separated during the divorce. In Illinois, the goal of divorce is to untangle spouses from each other's lives. When the spouses move forward, you want them to have as little financial interaction as possible — including interactions because of a family business.

In many situations, one spouse will keep the business and the other spouse is compensated appropriately. For that to be effective, it's critical to work with business and financial experts who are skilled at properly valuating the total value of the business.

At Rinella and Rinella, Ltd., we have more than 100 years of combined experience handling asset division, and our Chicago business attorneys know it's critical to ensure our clients' complex assets are handled appropriately. We have business experts on staff and continually develop our knowledge of financial matters.

Once a couple is divorced, it doesn't work well for them to both contribute to the business, such as being co-owners. If one spouse is going to keep the business, the other spouse is compensated for his or her share of the marital property.

Because family businesses can be considered marital property, it's important to remember that even if only one spouse worked in the business, the nonworking spouse may still be compensated for the value of the business. We work with experts to help ensure the valuation of the business is accurate, and we work to identify all possible tax issues and ramifications of dividing the business.

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Our lawyers can help protect your business. Learn more about the representation we offer by scheduling your consultation online or by calling 800-699-5181.