If your Illinois divorce involves one or more business interests, tension and animosity may overtake an otherwise amicable split. Among the points of contention are questions surrounding whether the entity is marital property and its value. We often help negotiate divorce settlements involving a family-owned business.
Carr Rigs & Ingram states that understanding the value of your business is critical for reaching an equitable divorce settlement.
Sweat equity measures the time and effort you put into the business. Owners who have spent a considerable amount of energy building and growing their company typically have an unrealistic perspective on its value. Setting the value using a multiple of gross revenue or net revenue may not deliver an accurate assessment. Other components provide a more practical determination of the fair market value of your company.
In situations where one spouse is more involved than the other, the less involved partner often feels that the business is worth more than the one who sees the numbers daily. By having an official valuation, you can see the forward-looking financials as well as historical data and expenses.
If you or your partner feel taken advantage of, it can complicate the proceedings and extend the amount of time and money required for an equitable settlement. Having a dispassionate third-party deliver a valuation to both of you simultaneously can minimize the mistrust and anxiety. When negotiations begin from the same starting point, there is an increased likelihood of reaching an agreement.
An attorney experienced in high-asset divorces may retain forensic accountants and financial experts who can resolve issues and help achieve an equitable division of the marital estate.