4 Reasons Why Business Valuation May Matter in Your Chicago Divorce
Most people in Chicago are familiar with at least some of the basic issues that routinely come up in a Chicago divorce case, such as child support and child custody, spousal maintenance (or “alimony”), the division of assets and properties, and maybe even pet custody issues. However, perhaps a lesser-known issue that can come in a Chicago divorce case is the issue of business valuation. Business valuation in the context of a Chicago divorce is the process of determining the fair market value of a business subject to the marriage for determining who gets what when it comes to the business, and, importantly, how much. Here are 4 reasons why business valuation may matter in your Chicago divorce if you are a business owner:
#1. A Well-Known Issue: Division of Property
If there is a business in the marriage that arguably is the property of both spouses, the business will need to be divided up, just like any other property that is subject to the marriage. Valuation of the business, usually by experts, is important in order to determine how much the business is worth as a basis for then determining a fair and equitable division.
#2. Determining Spousal Support (Alimony and Maintenance)
Spousal support (also called “alimony” or “maintenance”), is a sum of money, typically paid out regularly, to one spouse by the other to support the spouse with lower or no earning power. Business valuation may become important to the determination of spousal maintenance, since the value of the business and the businesses’ future earning capability is part of the earning power of one or both spouses. Thus, the value of a business subject to the marriage can impact the analysis when it comes to spousal support.
#3. Buyout of the Business During the Pendency of Divorce
One option that divorcing individuals may consider when a marriage involves a business is the buyout of one spouse’s interest by the other spouse. If one spouse wishes to buy out the other spouse, the fair market value of the business will be important to determining what is a fair price for the selling spouse’s interest in the business.
#4. Negotiating a Chicago Divorce Settlement
If a divorcing couple is interested in potentially resolving their divorce by settlement, they will need to know the value of any business subject to the marriage in order to make reasoned and informed decisions. Consulting with an experienced Chicago business valuation lawyer is a valuable resource for divorcing individuals who are business owners in Chicago, as an experienced Chicago business valuation lawyer can help appraise the value of the business and assist in settlement negotiations to protect your interests.
If you are located in Chicago and you are interested in speaking with an experienced Chicago business valuation lawyer, contact Birnbaum Gelfman Sharma & Arnoux, LLC. The experienced Chicago business valuation lawyers at Birnbaum Gelfman Sharma & Arnoux, LLC offer a confidential consultation to learn about your case and to see if they can assist you. Contact Birnbaum Gelfman Sharma & Arnoux, LLC to speak with a lawyer about your rights and options.