During a couple's marriage, they may start a business, either together or separately. If the couple chooses to get a divorce, they must address how ownership of this business will be handled. As with other assets, interests in a family business must be addressed as part of the equitable distribution of marital property. To ensure that business interests are divided fairly, a business valuation may need to be performed to determine the actual value of business assets. There are various approaches to this process, so it is important to understand the differences to determine which one is appropriate for your company. 

Business Valuation Methods

Multiple methods can be used to estimate how much a business is worth. One way of determining a business's value is by looking at the assets owned by the business. An asset-based approach is often better for larger companies that have business assets separate from the owners' personal assets. In smaller companies, a person's personal and business funds often overlap, which can make this approach more difficult. There are two asset-based valuation approaches that are typically used by business valuators: going concern, in which a business's liabilities are subtracted from the net balance of its assets, and liquidation, which looks at the potential profits earned by selling off all of the business's assets. 

When celebrities go through a divorce, everyone talks about the settlements. These high asset divorces are interesting because of the extraordinary dollar amounts in the millions and billions. For example, Jeff Bezos, the CEO of Amazon, gave up a quarter of his shares in the company to his ex-wife, and he is still the most wealthy man in America. Celebrity divorces are in the news a lot, but it does not take a famous person to have a high asset divorce.

Division of Marital Assets

In traditional gender roles, a man may have taken control of the finances. However, in modern times, there are more households with dual incomes where spouses share equal financial responsibility. Financial matters between a couple can be a breaking point in a marriage. Money is a major stressor in a relationship and is one of the leading reasons people choose to get a divorce. Studies show that the larger the difference between a couple’s credit scores, the more likely their marriage will end in divorce within five years. 

When two people decide to get a divorce, it is not only their marriage that is splitting. Everything that a couple built together will be divided. In regards to assets, Illinois is an equitable division state. Unlike a community property state, which splits marital assets 50/50, Illinois divides property based on what is fair. When it comes to the family home, it will be given to whomever the court deems is deserving based on certain factors surrounding the marriage. The other spouse will likely move to another location, and the couple's children will usually split their time between the parents' homes.

Factors Considered for Division

• Contribution to the marriage: When dividing marital assets, such as the home, the court will review and consider what each spouse contributed to the marriage. If one spouse gave up his or her career to raise children, that can be considered a significant contribution. In many cases, the other parent may have traveled for work and was gone for long periods at a time, so one parent staying home was a necessity to maintain the household. The court also considers economic circumstances such as employment-related issues such as income earned or the income-earning potential of each spouse. This factors into whether or not a person can afford to make mortgage and property tax payments on a house. 
• Child status: Courts attempt to disrupt a child’s current lifestyle as little as possible. Decisions are made with the best interest of a child in mind. That being said, when possible, a court will try to keep a child in the marital home. This also allows them to remain in the same community and school district. The parent with the most parental responsibility, in turn, may get the family home because it is the best choice for the child. 

Contact a Rolling Meadows Divorce Lawyer

The family home is filled with memories and it is where your child is likely the most comfortable. When going through a divorce in Illinois, determining which spouse gets to keep the house is based on what is considered “fair.” The skilled legal team of Anderson and Associates, P.C. has handled many divorce cases, and we understand Illinois divorce and family law matters. For any asset or property division concerns, contact an experienced Barrington division of marital property attorney to learn about your rights and options in regards to the family house. Call our office today at 847-995-9999 to schedule a free consultation.

When a married couple gets divorced, they must split up the life they created together. When it comes to dividing property, there are many factors that determine who gets what during a divorce. However, each spouse is entitled to receive a fair portion of the marital assets. During divorce, it is best to seek legal counsel in order to understand your rights and the best approach to take as you determine how to divide your marital property. 

Equitable Distribution 

In the state of Illinois, marital property is divided using a system of equitable distribution. While this term may lead one to believe that property is divided equally, this is not necessarily true in every case, and property will be divided based on what is fair for both spouses. There is rarely a 50/50 split of property during a divorce. What is determined to be fair by the courts is based on a variety of factors, including: 

The decision to divorce is difficult for any married couple. Whether it is losing the person you love, not seeing your children as often, or adapting to a new lifestyle, everyone has valid fears when the divorce process begins. Another common concern is about personal finances after you and your spouse split. If your spouse makes a significant amount of money, or if you do not have a college degree, giving up that financial support may feel hopeless.

Division of Assets

Unless you signed a prenuptial agreement before getting married, Illinois has a process when it comes to property and debt in a divorce called equitable division. While this does not mean that each spouse gets an equal share of marital property, the division of assets is done based on what is fair, while taking certain factors into consideration. How assets are divided are based on the length of a marriage, how much each spouse contributed to the marriage, economic and health circumstances, and whether children are involved. When it comes to physical property, premarital assets are usually left with the owner, and marital assets are included in the equitable division process.

The division of marital property is an essential part of the divorce process, but what some people forget is the division of debts. Whether credit cards, car loans, or student loans, it is important to take a close look at the debts that have accrued as a couple.

Every state has its own approach to dividing property, money, and debts. In Illinois, these are split according to what is equitable, not necessarily even, and takes various factors into account. Anything that is considered marital property can qualify for division. 

Illinois is an equal distribution state, which means when assets are split between two parties in a divorce, the judge determines what is a fair division. This does not mean assets are split 50/50, however, and numerous factors are considered, including:

• Length of the marriage.
• How much each spouse makes.
• Health and age.
• Standard of living.

If the home you and your spouse lived in was marital property, one person will typically be granted the family home. This is usually the spouse who has primary residential care of any children under the allocation of parental responsibilities (formerly called custody). For the other spouse, this means finding a new residence. 

Divorce is an emotionally daunting experience, but it can also be financially daunting, especially when it comes to the assets you own. Splitting your assets during divorce can be a lengthy process, and it can become frustrating if you and your ex-spouse get into bitter arguments about who gets what or how certain property should be allocated. Illinois law dictates that marital property is subject to equitable distribution, and non-marital property is not. In a nutshell, marital property includes any assets that were acquired during the marriage. It is important to understand how to divide certain assets, including the following types of marital property:

1. The House

The easiest way to divide this real estate asset is to sell your house and split the money. This works if neither spouse has a particular attachment to the home, and it offers an easier, less stressful way of dealing with what is often one of the most valuable marital assets. Before you sell your home, you should get the house appraised, ensuring that you know exactly what your property is worth.