Chicago Investments & Business Interests Lawyer
As a CEO or other high-powered executive, on top of a large salary, you may have a lot of investments, such as pensions and deferred compensation. You may even have your own business or at least shares or stock options in one.
While earning these types of compensation can be exciting, especially if you are still relatively young, it’s not so great if you’re on the verge of divorce. When your marriage ends, be prepared to have to split them with your spouse. This may not seem fair, but it’s the law in Illinois and all other states.
Splitting businesses and other investments is not a simple task in a divorce. That’s because determining the value of these assets is complicated, especially if the business is a private one that is not publicly traded. A Chicago investments & business interests lawyer from Birnbaum Gelfman Sharma & Arnoux, LLC can provide you with the help you need to effectively divide these complex assets.
What to Determine
Before you split the assets, you need to determine a couple things. First, it must be determined whether or not the investments or business interests are considered a separate or marital property. This will depend on several factors, such as:
- When you received the interest (was it owned prior to the marriage?)
- The source of the funds used to acquire the business
- Any financial contributions or personal efforts to the business by the other spouse
- The state in which the couple is divorcing
Next, you will need to hire an appraiser or accountant to determine the value of your business. Even if you and your spouse agree on a certain amount, it may be more than the true value, which benefits your spouse but not you. Valuation can be complicated for private businesses.
There are three general approaches that the accountant ot appraiser will use to determine the fair market value of your business interest:
- Asset approach
- Market approach
- Income approach
What Options Are Available?
So what happens next? What should you do with the business interests in a divorce? There are generally three main options:
- Buying out the other spouse. This is the most common option. The business owner buys out the spouse for half the value of the business.
- Selling the business. This is an option if there is no money to buy out the other spouse, although the business owner may be reluctant to do so.
- Remaining co-owners. This is the least common option. This is only for those on amicable terms, as co-owning a business with an ex-spouse is quite the challenge.
Contact Birnbaum Gelfman Sharma & Arnoux, LLC Today
If you’re an executive going through a divorce, there’s a lot at stake. You need experienced legal help to protect what’s yours and get the best outcome possible.
Count on Birnbaum Gelfman Sharma & Arnoux, LLC to guide you through the often complex process of splitting assets. Fill out the online form or call (312) 863-2800 to schedule a consultation with a Chicago investments and business interests lawyer today.