If you establish or acquire a business, you are heavily invested in its success. You devote significant effort to making it profitable, increasing efficiency, and positioning it for growth. At Glasgow & Olsson in Schaumburg, Illinois, we understand how important it is to advocate for your business interests if you are facing a divorce.
What is a Business Valuation?
Our lawyers will thoroughly assess the various aspects of your unique situation. It could be that both parties own a business, created a business together, or one party inherited a business. The complexity of your situation will determine the level of effort required to perform a comprehensive evaluation. Proper business valuations require more than just a cursory examination of corporate financials. It entails a detailed examination of:
- The history of the business
- The fair market value
- The potential for growth
- The role and contribution of each party
- The concept of goodwill
- The perceived capitalization rate
- The strengths and weaknesses of the business
- The income potential of both parties
The goal of a business valuation is to determine the ‘fair market value’ of the asset, as required by Illinois statute 750 ILCS 5/503(k). Fair market value is defined under the law as the amount that the property would fetch in a voluntary sale where the seller is ready, willing, and able to sell, but not compelled to do so, and the buyer is also ready, willing, and able to buy, but not forced to do so.
What if My Former Spouse and I Agree to a Valuation?
It is often difficult to reach an agreement on the value and division of a business in a divorce, unless both parties have an equal understanding of the business’s operations and future earnings. This can typically only be achieved if both parties have worked in the business. If the former spouses cannot work together, courts prefer to award the business to one party to avoid ongoing association and the need for court intervention.
Divorcing parties may be unable to work together in a continued business association, and the court must consider this when apportioning marital assets. If one party operates the business and the other does not, there may be a significant disparity in their understanding of the business’s value and income. As a result, the knowledge gap must be closed or a divorce court must make a ruling on the value and division of the business.
Glasgow & Olsson are Here to Help Navigate Your Interests in a Divorce.
No matter what role you play in the business, we adeptly represent owners and those seeking an equitable share of business assets in divorce proceedings or mediations. We can negotiate fair terms for amicable resolutions outside of court. But if a trial is the best means for justice, our assertive representation is unmatched. Mr. Thomas Glasgow, our lead attorney, is motivated by a genuine desire to protect the rights of all clients and insists on fair treatment in divorce matters.
If you need representation for a divorce in Cook County, Glasgow & Olsson is here to help. When you need an attorney, experience matters. Contact us today to learn how our experience can get you the results you deserve.