Oak Park Divorce and Business Valuation Lawyer

Attorneys Providing Legal Help With Forensic Accounting in High Asset Divorce Cases in Chicago

When a couple with a high net worth chooses to get a divorce, obtaining a complete and accurate picture of the spouses' financial situation is often a complex undertaking. This is especially true if the spouses own interests in a business, either together or separately. When determining the value of these marital assets, an experienced attorney can help manage the avalanche of legal issues and financial concerns involved.

At Wakenight & Associates, P.C., our lawyers have a combined total of over 95 years of legal experience, which ensures that our clients have a strong advocate on their side throughout the legal process. We understand how to address matters related to business interests, and we will work to help you achieve success in your divorce case.

Business Valuation Methods

A business owned by either spouse is considered a marital asset if it was acquired or founded during the couple's marriage. Along with other marital property, business interests are subject to Illinois divorce laws, which require spouses to divide assets fairly and equitably. 

When determining the value of business interests, it can be beneficial to work with a forensic accountant who will examine the company's records to determine its value. An accountant will typically use one of three methods to place a value on a business:

1. Asset approach - This method reaches a value through a straightforward calculation that considers all tangible and intangible business assets, such as inventory, equipment, accounts receivable, and intellectual property, while subtracting any debts or liabilities.
2. Income approach - This method bases a business's value its projected future earnings, looking at areas such as cash flow, expected rates of return, historical financial data, and future economic benefits. When taking this approach, it is important to consider what is fair compensation for the primary stakeholder of the business.
3. Market approach - This method examines the sales of other similar businesses in the same geographical area to determine the amount which would be received if the business were to be sold. Couples may wish to use this approach if they plan to liquidate the business during divorce in order to divide business assets.

In addition to appraising the value of a business, a forensic accountant may also examine business records to uncover any hidden assets or income. Some methods spouses may use to conceal assets in a business include misreporting business income, paying nonexistent employees, overpaying business debts, or making business transactions in cash.

Contact Our Chicago Divorce Attorneys

Business interests can represent a significant part of the marital estate, and you deserve to receive a fair and equitable share of these assets during your divorce. If you need to ensure that the value of your business is calculated correctly, or if you are concerned that your ex-spouse has used a business to avoid sharing assets with you, we can work with financial experts to address these issues. With our help, you can be prepared for financial success after your divorce has been finalized.

Contact us today by calling 708-480-9651 to set up a free initial consultation with our lawyers. We represent spouses in high conflict and high net worth divorces in Oak Park, Skokie, Chicago, Cicero, Forest Park, Berwyn, Maybrook, Riverside, Elmwood Park, River Forest, and throughout Cook County.