When we represent clients in high-net-worth divorces, one of the most important concerns we hear is how to protect business interests. A business is more than just an asset—it often represents years of work, personal investment, and ongoing income. Whether you are a business owner or the spouse of one, knowing how Illinois law handles business interests during divorce is very important in your divorce case. The stakes are high, and a poorly handled settlement can result in unfair loss or long-term financial consequences. That’s why we work closely with each client to protect their rights and help ensure a fair outcome.
Under Illinois law, all marital property must be divided equitably. This includes ownership interests in businesses that were started during the marriage or appreciated during the marriage, even if one spouse is not involved in day-to-day operations. The Illinois Marriage and Dissolution of Marriage Act (750 ILCS 5/503) governs how business interests are classified, valued, and distributed.
The first step is identifying whether the business interest is marital property. If a business was started during the marriage, the business will likely be considered marital property. If it was started before the marriage but increased in value due to joint efforts or the use of marital funds, the increased value may be marital property. Even if the business is titled in one spouse’s name, that alone doesn’t prevent it from being subject to division.
In some cases, part of the business may be classified as marital and part as non-marital. For example, if a spouse started a company before the marriage but expanded it significantly during the marriage with shared resources, the court may decide that the appreciation is marital property.
Once the business is classified as marital or partially marital, it must be valued. We often work with forensic accountants or business valuation professionals to determine the true worth of the business. The valuation includes assets, liabilities, income, and goodwill. If the business produces ongoing income, that factor will also impact support obligations and property distribution.
Goodwill can be especially important. In Illinois, only “enterprise goodwill”—which is tied to the business and not the individual—is generally considered marital property. “Personal goodwill,” which is tied directly to the owner’s skill or reputation, is typically excluded.
Business owners want to ensure that their operations are not disrupted during divorce. Courts rarely force a sale of a business. More commonly, the owning spouse retains the business, and the other spouse receives offsetting assets. We work to negotiate fair solutions that allow our clients to maintain business control while ensuring an equitable settlement.
This may involve structuring a buyout, assigning other property to the non-owner spouse, or establishing a payment plan. We also review any shareholder agreements, operating agreements, or partnership documents that may restrict transfer or require consent from other business partners.
Income generated by the business plays a major role in determining spousal support and child support. Illinois uses statutory guidelines to calculate support, but courts also consider net income, available resources, and standard of living during the marriage under 750 ILCS 5/504 and 750 ILCS 5/505. Business owners must provide accurate and complete financial records. Failing to do so may lead to court sanctions or unfavorable rulings.
A business is considered marital property if it was started during the marriage or increased in value during the marriage due to joint contributions or the use of marital assets. Even if the business was started before the marriage, a portion of it may still be marital if it appreciated during the marriage.
If you started the business before the marriage, it may be classified as non-marital property. However, any growth or appreciation in value that occurred during the marriage—especially if funded or supported by marital efforts—may be considered marital and subject to division.
Courts in Illinois generally do not order business owners to sell their companies during a divorce. Instead, they may award the business to one spouse and compensate the other with a fair share of other marital assets.
A business is typically valued using professional valuation methods, including the income approach, asset approach, or market comparison. We often bring in financial experts to help determine the fair market value and ensure all factors are considered.
Goodwill refers to the value of a business’s reputation or customer loyalty. In Illinois, only enterprise goodwill—which is tied to the business itself—is considered marital property. Personal goodwill, which is tied to the owner’s reputation, is generally not divided.
Yes. Business income is factored into the calculation of both child support and spousal maintenance. Accurate financial disclosures are required, and if business income is being hidden or misrepresented, the court may impute income based on evidence.
We review all partnership or shareholder agreements to determine any restrictions on ownership transfer. These agreements may require approval from other partners or allow the business to buy back shares to prevent ownership by a non-partner spouse.
Yes. A valid prenuptial agreement can define a business as non-marital property and protect it from division. We help clients create and enforce prenuptial or postnuptial agreements to safeguard business assets.
If your spouse contributed to the business—whether through direct labor, financial support, or managing household responsibilities—that contribution may give them a claim to a share of the business’s value or profits.
We work to create a legal strategy that minimizes disruption, protects your financial interests, and allows you to continue managing your business. This may include confidentiality agreements, temporary orders, and structured settlements.
At Gordon & Perlut, LLC, we understand how important your business is to your future. Whether you’re a business owner or married to one, we will help you protect your financial interests and make informed decisions during divorce. High-value assets deserve careful legal attention—and that’s what we provide.
If you’re facing divorce, contact our Chicago divorce lawyers at our Chicago office at 312-360-0250 or our Skokie office at 847-329-0101 to arrange a free consultation. We proudly represent clients throughout Illinois in complex divorce cases involving business interests.