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Any couple that owns a business together, and that is going through a divorce, will likely have to establish the value of the business in order to appropriately determine how the marital property will be divided. When business interests commingle with a divorce, matters can become quite complex and it may be best to seek out an attorney with expertise in handling business valuations. A skilled family law attorney in Illinois can help a divorcing couple obtain a business valuation in order to facilitate and expedite the process of property distribution.
What is a Business Valuation?
For any divorcing couple in Illinois, it is a legal requirement that all businesses in which the couple own or share ownership rights must be valued. Parties involved in the divorce proceeding may testify to the value of the business entity. One spouse may undervalue the business and the other spouse may overvalue the business, all in order receive a property settlement more favorable to them. This is where an accurate business valuation proves to be very useful.
How is a Business Valuation Conducted?
A business valuation requires close scrutiny and review of a business's finances and affiliated records. There are numerous considerations to be made when determining the value of a business entity.
The Standard(s). First, various standards of value exist—fair value, fair market value, minority value, majority value, and marketability value.
The Method(s). Additionally, the appropriate valuation method must be applied. There are several valuation methods. These include: cost (or income valuation); underlying asset values; comparatives (or market approach); and formula method.
As it relates to the business entity at hand, it must be determined which standard or method is most appropriate and should be applied in order to discover the value of the business. Once your business valuation is complete, property division can be fairly negotiated and/or determined, either by the spouses themselves, or by a third party.
Protect Your Rights and Financial Assets with the Help of an Attorney in IllinoisIf you are getting a divorce and financial interests involving a business you share with your spouse is involved, seek the assistance of experienced DuPage County divorce and valuation attorneys at Martoccio & Martoccio. Our attorneys can complete the business valuation for you, review the accuracy of a recently completed valuation, and can even assist you in negotiations for fair property division. We can also assist you with child custody, visitation, and any other issues that often arise in Illinois divorces. Our offices are located in Hinsdale, IL and we serve all of DuPage, Cook, Kane, Kendall, and Will County. Contact us today, either online or at 630-920-8855, and we can set up your free initial consultation and start discussing your case.