Illinois divorce attorney Russell D. Knight (https://rdklegal.com/how-to-value-and-divide-a-business-in-an-illinois-divorce/) of the Law Office of Russell D. Knight has released an in-depth article titled "How to Value and Divide a Business in an Illinois Divorce." The article addresses the complex matters and challenges involved in valuing and dividing business assets during a divorce in Illinois.
Illinois divorce attorney Russell D. Knight provides a thorough examination of the intricate process involved in determining the value of a business, which is often a contentious issue in divorce proceedings. Knight notes, "The business-operating spouse will always want to keep the business while claiming the business is worthless. The spouse who doesn’t operate the business will want a grandiose share of the business’s value without really knowing what that value is."
Illinois divorce attorney Russell D. Knight emphasizes the importance of understanding how Illinois courts determine the value and division of a business. He explains that this knowledge is crucial not only for the business owner and their spouse but also for their legal representation. "The litigants’ divorce lawyers must understand completely how a business is valued by experts who disagree and how to apply those valuations to the body of Illinois law that governs the valuation and division of businesses in an Illinois divorce," Knight states.
One of the critical points Illinois divorce attorney Russell D. Knight addresses is whether a business is considered marital or non-marital property. "Every asset in an Illinois divorce must first be determined to be marital or non-marital," explains Knight. He elaborates that non-marital property typically includes assets acquired before the marriage or through inheritance or gifts. Knight also discusses scenarios where business interests acquired after the marriage might retain their non-marital character, depending on the source of the acquisition funds and the contributions made post-marriage.
The article also describes how businesses get divided in an Illinois divorce. Knight points out that agreement on the value and division of a business is often only possible when both parties have equivalent knowledge of the business’s operations and future earnings. He remarks, "Courts will rarely, if ever, award portions of a business to both spouses where the now-ex-spouses must work together."
In cases where the business is deemed marital, Illinois divorce courts aim for a division that avoids ongoing association between the parties. Knight highlights that the business operator is usually awarded the business due to their ability to continue earning income from it. "The spouse that knows how to continue to earn income from the business will inevitably be awarded the business," says Knight.
Valuing a business in an Illinois divorce often involves closely held corporations or partnerships. Knight explains that the value of such businesses is determined by their fair market value, typically through expert testimony. "Experts can opine on hundreds of factors that determine or modify the value of a closely held business," he notes. Knight stresses the importance of expert analysis and the role of business valuation experts in providing credible and comprehensive evaluations.
The article also touches on the qualifications required for an expert to provide an opinion in an Illinois divorce court. According to Knight, "The proposed expert must have a level of experience that the court deems sufficient to provide an opinion on the subject matter." He adds that the expert's analysis must be thorough and their testimony will be examined in detail by the court.
Understanding the complexities of business valuation and division in an Illinois divorce is essential for ensuring fair outcomes. Those involved in such cases are encouraged to seek knowledgeable legal representation to navigate these challenges effectively.
For those looking to discuss the value of their business in the context of a divorce, Illinois divorce attorney Russell D. Knight can offer consultations to provide guidance and support.
About the Law Office of Russell D. Knight:
The Law Office of Russell D. Knight is dedicated to providing comprehensive family law services in Chicago, Illinois. Led by attorney Russell D. Knight, the firm is committed to helping clients navigate the complex aspects of divorce and other family law matters with clarity and confidence. The team focuses on delivering personalized legal solutions tailored to each client's unique circumstances.
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State: Illinois 60610
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