Businesses in Illinois divorces are typically considered marital property. Even if only one spouse operated the business, it is generally assumed that the profits from the business contributed to the needs of the couple, the children, and the household. Due to this, when one or both spouses operated a business during the marriage, it is subject to the property division rules of the state. Dividing a business is one of the most complicated aspects of any divorce and typically, there are three ways in which it can be done.
Give Your Spouse Something of Equal Value
You can give your spouse something that is equal to their portion of the business in one of two ways. If you operate the business and want to continue doing so after the divorce, you can simply buy your spouse out. In this method, the value of the business is divided and you will have to pay your spouse their equal share. In some cases, you may not have to buy out your spouse, but you may allow them to keep more assets during property division hearings. For example, if you want to keep the business and your spouse wants to keep the family home that is approximately the same value, you can forfeit your rights to the home and retain control of your business.
Sell the Business
If you do not wish to continue running the business after divorce, selling it might be a good option. In this instance, the business is simply sold and you and your spouse will divide the proceeds fairly. This is not always a good option, as many people do not want to lose the hard work they have put into a business to simply sell it. However, if neither spouse wants it, or you both co-owned and operated the business and you will not be able to continue doing so once the divorce is final, this may be the only way to do it....