When undergoing a divorce, it’s wise to seek insights on how it’ll affect your business. You want to know whether it’ll be considered marital property. And if it’s marital property, you need to know how to undertake the business divorce.
You want information that’ll ensure you have a smooth transition and expedite the divorce process. Your goal is to complete the divorce quickly and start another better chapter of your life.
To help you out, here is what you need to know about business valuations and divorce in Illinois.
Business Valuation Methods
Once the court rules your business, a marital property, it’ll be subjected to equitable distribution during the divorce. So, this will involve determining the value of the business. Here are some of the most popular business valuation methods.
The asset-based approach involves calculating all the business assets and subtracting the liabilities. The idea is to determine the net assets and use this figure when discussing divorce terms. To know when to employ this method, seek the help of the best Illinois divorce attorney.
The Market Approach
You can also know the business value by checking the values of other similar businesses in the area. So, you’ll need to check the prices of other similar businesses that have been sold recently. The great thing about this approach is that it’s easy to get this information from the internet.
The Income-Based Approach
The income-based approach determines a business’s value by predicting its future income. To do this, an expert will check the business’s past profits and its cash flow. The idea is to get data that helps project the business growth and future revenues.
So, you’ll wonder, out of the above three approaches which one you should use during your divorce. To get a reliable answer on which method to use, consult an experienced divorce lawyer in Illinois.
What Happens to the Business after a Divorce?
The common misconception is that you must dissolve the business during the divorce. However, this isn’t always the case as there are many other alternatives. For instance, as a sole business, you have the option to payout your ex-spouse.
On the other hand, if you had a partnership with your spouse, one of you may agree to buy out the other one. So, to know how to handle this buyout, you should seek the help of the top Illinois divorce attorney. The lawyer will guide you to know the right paperwork for this process.
Handle Business Divorce with Ease by Involve the Top Illinois Attorneys
To smoothen and expedite the business divorce process, it’s wise you involve the top attorney. The attorneys will guide you to know the various methods you can use to determine the business value. You want to learn in-depth how all the above approaches work and one to employ.
Besides, the attorney will help you know what’ll happen to your business after the divorce. You want to get recommendations on the best way to handle the business divorce. Call us today and talk to our friendly and compassionate divorce attorneys.