The River North Divorce Report

River North represents a distinct socio-economic ecosystem where modern wealth accumulation collides with Illinois family law. Once "Smokey Hollow"—a gritty industrial district—it's now Chicago's premier enclave for tech executives, advertising professionals, and creative entrepreneurs whose asset portfolios are as complex as they are substantial.

The River North Economic Engine

River North houses Chicago's digital economy. Advertising agencies, architectural firms, and tech startups fill the converted warehouses and modern high-rises. Companies like Bounteous, Cramer-Krasselt, and numerous boutique agencies employ many of the residents who inhabit the neighborhood.

This concentration drives the types of assets that appear on the balance sheet:

• Intangible business assets: Ownership stakes in service-based businesses where the primary value is "goodwill" rather than machinery or inventory
• Intellectual property: Copyrights, patents, and royalties from creative outputs in design and advertising
• Digital wealth: Cryptocurrency portfolios and NFT collections prevalent among the tech-savvy demographic
• Executive equity: RSUs, stock options, and carried interest from tech and finance positions

RSUs & Stock Options: The Hunt Formula

In River North, the W-2 form rarely tells the whole story. For executives at local agencies and tech firms, compensation includes equity designed to incentivize retention—creating "golden handcuffs" that divorce litigation must unlock.

Restricted Stock Units (RSUs)

RSUs are promises to deliver shares at a future date, provided the employee remains and/or performance goals are met. Most grants have vesting schedules (e.g., 25% per year over 4 years).

The conflict: If an executive receives 10,000 RSUs in Year 1 and files for divorce in Year 2, only 25% have vested. The remaining 75% are contested—are they compensation for past marital efforts or incentive for future post-divorce performance?

The Illinois Approach: In re Marriage of Hunt

Illinois courts use a specific formula derived from In re Marriage of Hunt to divide unvested equity. This "coverture fraction" calculates the marital portion based on time worked during marriage relative to total vesting period:

The Constructive Trust Solution

Most plan documents prohibit transferring unvested RSUs to an ex-spouse. Courts solve this by ordering the employee to hold the ex-spouse's share as a trustee—selling shares when they vest and transferring net proceeds after taxes.

Lofts, High-Rises & The ROFR Trap

River North real estate is vertical—converted industrial lofts, ultra-luxury high-rises, and rare townhomes. Each property type introduces specific legal hurdles.

The Historic Loft

Buildings like Sexton Lofts (360 W. Illinois) or Paper Box Lofts (153 W. Ohio) command premiums for timber-and-brick character. But unlike uniform high-rise units, lofts vary wildly in ceiling height, exposure, and renovation level. Finding true comparables is difficult, leading to wide appraisal disparities.

The Right of First Refusal (ROFR) Trap

A critical, often overlooked mechanism: Under Section 30(e) of the Illinois Condominium Property Act and specific building bylaws, the HOA often has the right to purchase a unit on the same terms as an outside buyer.

Divorce implications: Transfers between spouses incident to divorce are typically exempt from ROFR—but this depends on specific condo declaration language. If the settlement requires selling to a third party, the ROFR process adds 30 days to closing. In volatile markets or when cash is urgently needed, this delay is material.

Special Assessments

Historic loft buildings are prone to massive capital expenditures—facade tuckpointing, roof replacements, modernizing century-old freight elevators. A standard appraisal looks at current value, not a looming $50,000 special assessment the Board is discussing but hasn't yet voted on.

Smart attorneys subpoena 24 months of Board meeting minutes to identify upcoming capital projects.

Art Collection Valuation

River North contains the largest concentration of art galleries in the United States outside Manhattan. For residents, collecting isn't merely a hobby—it's a significant component of net worth.

The Subjectivity Problem

Unlike publicly traded stock, a painting doesn't have a definitive "price" until sold. A piece purchased for $15,000 a decade ago could be worth $150,000 or $5,000 today, depending on the artist's career trajectory.

USPAP-compliant appraisals are essential. Insurance appraisals (replacement value) differ significantly from fair market value (what you could sell it for). Engage accredited appraisers from organizations like the International Society of Appraisers.

The Blockage Discount

If a couple owns many pieces by a single artist, flooding the market simultaneously would depress prices. The spouse retaining the collection can argue for a "blockage discount"—reducing total valuation to account for market absorption limits. This lowers the buyout price owed to the other spouse.

Division Methods

• Round Robin Selection: Spouses take turns choosing pieces until the collection is exhausted. Avoids sale costs but requires roughly equal value across pieces.
• Auction Sale: Consigning to Heritage Auctions or Toomey & Co. settles valuation disputes definitively. But seller's premiums (10-25%) significantly deplete the estate.

Cryptocurrency & Digital Assets

River North's tech demographic means crypto portfolios appear frequently in divorce proceedings—and they're designed to be difficult to find.

Forensic Tracing

Unlike bank statements, crypto wallets don't send monthly summaries. But almost all crypto enters through an "on-ramp"—a transfer from a traditional bank to an exchange.

• Bank analysis: Forensic accountants trace transfers to Coinbase, Kraken, Gemini
• The "dust" trail: Even emptied wallets retain tiny fractions. Blockchain forensics can trace where funds went
• Tax returns: Schedule D asks specifically about virtual currency. If a spouse checks "Yes" but doesn't disclose crypto in their Financial Affidavit, they've committed perjury

NFT Valuation

NFT values can swing from $200,000 to $50,000 in months. Rather than arguing dollar value, the most equitable solution is often "in-kind" division—transferring actual tokens so both parties share future market risk equally.

Business Valuation & The Goodwill Battle

Many River North residents are entrepreneurs—founders of boutique PR firms, design studios, or specialized practices. When these owners divorce, the business is often the largest and most contested asset.

Personal vs. Enterprise Goodwill

Illinois distinguishes between two types of goodwill:

Consider a boutique ad agency:

• Owner's argument: "Clients come here because of me. If I leave, the agency is worthless." (100% Personal Goodwill → $0 payout)
• Spouse's argument: "The agency has 50 employees, a recognized brand, and Fortune 500 contracts." (Enterprise Goodwill → High payout)

Valuation experts use the Multi-Attribute Utility Model (MUM) to scientifically allocate goodwill between Personal and Enterprise buckets, scoring attributes like referral patterns, key person dependence, and brand recognition.

Dissipation & Lifestyle Audits

Dissipation is the misuse of marital assets for one spouse's sole benefit while the marriage deteriorates. Illinois requires claims to address conduct within 5 years before filing and 3 years of when the claiming spouse knew about it.

River North's nightlife offers ample opportunity for dissipation claims:

• Unexplained dinners at RPM Steak or Bavette's that aren't business expenses
• Bottle service at Tao
• Lavish spending on a paramour at the Peninsula Hotel

Forensic accountants trace spending patterns, comparing reported income against actual expenditures. If a spouse who historically spent $500/month on dining suddenly spends $5,000/month at Gene & Georgetti during the marriage breakdown, that delta may be charged back as dissipation.

Privacy Strategies for Professionals

Illinois divorce records are presumptively public. Simply being "wealthy" or "embarrassed" isn't sufficient grounds to seal a file. But specific protections are achievable:

• Seal specific documents: Financial affidavits, business valuations, psychological evaluations can be filed under seal when compelling interests exist
• Settlement before trial: Keeps details out of court proceedings entirely
• Private mediation: Nothing said in mediation is admissible; parties can include confidentiality clauses in settlements
• Arbitration: Cases heard in private law offices rather than the public Daley Center

The Strategic Roadmap

Divorce in River North requires strategy tailored to specific asset classes: tech equity, creative business valuations, art collections, and digital assets. Standard approaches fail here.

Key imperatives:

• Forensic preparedness: Preserve all grant letters, wallet addresses, and transaction histories immediately
• Valuation vigilance: Demand USPAP-compliant experts who understand the local micro-market
• Goodwill segmentation: For business owners, the Personal vs. Enterprise fight is the single most important variable
• Privacy by design: Utilize private mediation and specific sealing motions