The Basics of Business Valuation in Divorce

 Posted on May 06, 2025 in Asset Division

When a couple divorces, the division of assets can become particularly complex when one or both spouses own a business. Whether the company is a family-run operation, a professional practice, or part of a larger enterprise, understanding its value is the first step in ensuring a fair and equitable settlement under Illinois law.

Across Illinois, divorcing spouses with these complex financial considerations need to find representation from a lawyer with strong legal and financial insight. At our firm, our Kane County, IL divorce attorneys offer exactly that — including the perspective of a Certified Financial Litigator who can break down the numbers and help clients make informed decisions about their business interests.

Is My Business Marital Property?

A business is usually considered marital property if it was started during the marriage or if it grew significantly in value during the marriage due to either spouse’s contributions. This means that even if only one spouse ran the company, the other may still have a legal claim to a portion of its value. Determining that value is the first step in negotiating a fair property division.

How Do I Know How Much My Business is Worth? 

Business valuation typically relies on one or more of the following methods:

• Income approach, which estimates the business’s value based on future income projections

• Market approach, which compares the business to similar businesses that have recently sold

• Asset-based approach, which totals up the business’s assets and liabilities to find its net worth

Each method involves analyzing detailed financial records, including profit and loss statements, tax returns, balance sheets, and sometimes even customer contracts and goodwill. In contentious divorces, spouses may disagree over which method to use or how to interpret the data, making professional guidance critical.

If Part of My Business Belongs to My Spouse, How Do We Divide It? 

Illinois follows the principle of equitable distribution, which means property is divided fairly — though not always equally — based on factors like each spouse’s contribution to the marriage, their future financial needs, and whether one spouse has been or will be caring for young children. 

Illinois courts generally prefer to see spouses create property division agreements by themselves, using the help of a mediator if necessary. However, if a court has to step in to divide a business that is marital property, it may decide to:

• Award the business to one spouse while compensating the other with cash or other assets

• Divide the business ownership between both spouses (though this is rare)

• Order the business to be sold and the proceeds divided

Having a Certified Financial Litigator on your side can help clarify and facilitate the valuation process, protect your financial interests, and present a compelling case if litigation becomes necessary. Our attorneys have specialized training in financial issues surrounding divorce and can work alongside forensic accountants, business appraisers, and tax professionals as needed.

Contact a St. Charles, IL Divorce Lawyer and Certified Financial Litigator

Business valuation in divorce is not just about numbers — it is about securing your financial future. Whether you are the business owner or the spouse of one, you deserve clear, accurate answers and a team that understands how to achieve them.

Contact a Kane County, IL divorce attorney at Weiler & Associates, Inc. by calling 630-331-9110 to learn more about how we handle complex divorces involving business ownership and valuation.