Frequently Asked Questions
How are businesses valued in Illinois divorce?
Courts use three primary methods: income approach (capitalization of earnings or discounted cash flow), market approach (comparable sales), and asset approach (net asset value). The appropriate method depends on business type, industry, and available data. Expert CPA testimony is typically required.
Do I have to sell my business in divorce?
Rarely. Illinois courts prefer awarding the business to the operating spouse with offsetting assets to the non-owner. Only when no equitable offset exists will courts consider forced liquidation. The key issue is proper valuation and creative property division.
What is the difference between enterprise and personal goodwill?
Enterprise goodwill (reputation, customer relationships, brand value) is transferable and divisible as marital property. Personal goodwill (value attributable to the owner's individual reputation and skills) is typically not divisible. This distinction is frequently contested in professional practice divorces.
Written by Jonathan D. Steele
Chicago divorce attorney with cybersecurity certifications (Security+, ISC2 CC, Google Cybersecurity Professional Certificate). Illinois Super Lawyers Rising Star 2016-2025.
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