Getting Divorced When You Have a Family Business 

 Posted on March 17, 2023 in Divorce

When you have a family business and are getting divorced later in life, the situation can be especially complicated. A family business is not just another asset to divide up, it is much more than that. Consequently, deciding how to handle a family business during a gray divorce can be extremely difficult, legally and emotionally.

An Accurate Valuation is Usually the First Step

Before you can decide how to handle the family business during your divorce, you will need to determine its value. This means obtaining a professional business valuation. It is important to get an accurate and detailed appraisal so that you have a clear sense of the company's worth before making any decisions about it.

Determining Ownership and Division

Once you have determined the value of your family business, the next step is to decide who will retain control over it. Depending on the size of the business and its value, you might opt to sell it off and split the profits. This is a popular choice for those who want a fresh start or need to use the proceeds to pay off joint debt during the divorce. Of course, it can be very hard to give up a business that you have likely poured years of time and energy into.

If either spouse has a vested interest in running the business, they can buy out their former partner's share. This is often accomplished by assigning marital property of equivalent value to the spouse who gives up his or her share of the business. For example, if one spouse gives up their half of the family business, they might receive a larger portion of other assets such as the family home or investments.

Divorcing spouses can also opt to keep control of the business within the family by allowing both parties to retain a stake in it. This will require a great deal of cooperation and trust between both parties. For some divorcing spouses, the situation is simply too contentious to allow the spouses to continue running the business together after the divorce. However, if you and your spouse are willing to work together and put emotions aside for the sake of the company, this solution can be a viable choice.

Contact our Wheaton Divorce Lawyers for Business Owners

When you own a business, your divorce case will inevitably be more complex than a typical divorce. Divorcing spouses over age 50 will also need to contend with the division of retirement accounts, the marital home, and other complicated financial matters.

At Divorce Over 50 - Goostree Law Group, our DuPage County divorce attorneys provide skilled legal guidance for divorcing spouses over age 50. Call 630-634-5050 for a free consultation.

Source:

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm