Business Valuation in Divorce:
Protect What You Built
Divorce can raise questions about a company’s value, ownership, cash flow, and your income. Jonathan D. Steele represents Chicago business owners and spouses with business interests, coordinating with qualified accountants and appraisers when the matter calls for it.
A legal plan for the business questions in your divorce
A consultation after conflict clearance can address ownership history, company agreements, compensation, available financial records, and whether an independent valuation is appropriate. The legal representation and any outside accounting or appraisal work have distinct scopes.
After the conflict check, the team can identify the records needed for review. These may include ownership agreements, tax returns, financial statements, and compensation records. Do not upload company records or customer information through the initial callback form.
For other property and compensation issues, see complex-asset divorce.
Request a callback from the intake teamRepresentation is subject to a conflict check, availability, and case acceptance through Beermann LLP. Requesting a callback does not create an attorney-client relationship.
The Business Valuation Challenge
In Illinois divorce proceedings, closely-held businesses must be valued and divided as marital property (if acquired or grown during marriage). But business valuation is not an exact science—and the difference between valuation methods can be millions of dollars.
Common Valuation Disputes
- Goodwill allocation - Is it personal (non-marital) or enterprise (marital)?
- Owner compensation - Are you taking market-rate salary, or is income hidden as "reinvestment"?
- Minority discounts - Should a 50% ownership be valued at 50% of the whole?
- Future earnings - How much should growth potential affect current value?
Valuation Methods
Values business based on net assets (assets minus liabilities). Often undervalues profitable businesses.
Projects future earnings and discounts to present value. Sensitive to growth assumptions and discount rates.
Compares to similar businesses that have sold. Limited by availability of comparable data.
Business Types We Handle
Professional Practices
Medical practices, law firms, dental offices, accounting firms. Complex goodwill issues between personal and enterprise value.
Retail & Franchises
Restaurants, retail stores, franchise operations. Inventory valuation, lease analysis, franchise agreement review.
Tech & Startups
Software companies, SaaS businesses, e-commerce. IP valuation, recurring revenue analysis, equity compensation.
Construction & Trades
Contractors, plumbers, electricians. Equipment valuation, work-in-progress, bonding capacity.
Real Estate Holdings
Property management, development companies, REITs. Cap rate analysis, NOI verification, market comparables.
Manufacturing
Factories, distributors, wholesalers. Machinery valuation, inventory methods, supplier contracts.
How I Protect Business Owners in Divorce
Independent Valuation Expert
I engage certified business appraisers (ABV, CVA, ASA) who will testify as expert witnesses if needed.
Financial Statement Analysis
Forensic review of tax returns, P&Ls, and balance sheets to identify normalization adjustments and owner perks.
Buy-Sell Agreement Review
Existing agreements may dictate valuation—or may be unenforceable in divorce. I analyze your options.
Ownership Protection Strategies
Structured buyouts, installment payments, and creative asset swaps that let you keep operating your business.
Key Questions I'll Answer
- What is the fair market value of your business?
- How much of the value is personal vs. enterprise goodwill?
- Is your spouse entitled to a share, or only to value growth during marriage?
- Can you buy out your spouse's interest over time?
- What assets can you trade to keep your business intact?
- How do you prevent your spouse from disrupting operations during divorce?
Protect Your Business in Divorce
Start with a conflict-check intake before sharing confidential business details.