What Are the Options for Handling Your Business in a Divorce?

 Posted on October 12, 2026 in Divorce

For many business owners, their company is their livelihood. However, all of that growth and success is jeopardized if you or your spouse seeks a divorce. Even if your spouse was never necessarily involved in the functions of the business, there is a possibility that he or she is entitled to a portion of the business’s value simply because of your marital status. 

Financial decisions made during your divorce can affect you for the rest of your life, so you should consult with a DuPage County, IL divorce lawyer before you do anything. At Law Office of Ronald L. Hendrix, P.C., we can help you determine how you should handle your business when you are going through a divorce. Attorney Hendrix has over 30 years of experience, and he is more than prepared to handle a complex divorce involving valuable business assets.

How Do You Value a Business in a Divorce?

Valuing a business in an Illinois divorce usually requires help from a neutral financial expert. In some cases, each spouse hires their own expert instead. The expert reviews the company's records, debts, assets, and earnings history. He or she can compare it to similar businesses that sold recently. The expert might also estimate how much money the business is likely to earn in the coming years.

Goodwill can also affect a business's value. Goodwill is the value that comes from a company's name, reputation, and loyal customers. Illinois courts often separate goodwill tied to the company from goodwill tied to one owner's personal skills. In many cases, only the company's goodwill is divided. The timing of the valuation can change the final number, too. A business may be worth more or less depending on the date used.

What Portion of a Business Is Considered Marital Property in Illinois?

In Illinois, a business started during the marriage is usually treated as marital property. A business started before the marriage is often non-marital property. The same is true for a business one spouse received as a gift or inheritance. Still, the line between the two is not always clear.

A non-marital business can grow in value during the marriage. If that growth came from either spouse's hard work, the marital estate may be entitled to reimbursement. Mixing money can also cause problems. Using shared savings to cover business costs can blur who owns what. Paying household bills from business accounts can do the same. Clear records can help show which parts belong to each spouse.

Illinois divides marital property in a way that is fair, which does not always mean a 50/50 split. A judge may look at each spouse's role in building the business. Contributions as a homemaker or parent can be factored into the division of assets as well.

What Should You Do With Your Business in a Divorce?

One of the most difficult decisions you will face during your divorce is determining what to do with your business. Typically, there are three options that are available to you. You can buy out your spouse’s share of the business and retain full ownership, sell the business and split the profits as is seen fit, or you can continue to co-own the business. There is no one right answer to what you should do. Each family’s situation is different, so each solution will also be different. 

• Buying Out Your Spouse: The most favorable option for most people is typically to purchase their spouse’s share in the company, allowing them to retain complete ownership of their business. Before you do this, you will need to get a fair valuation of your business by a third-party professional to ensure you are not paying more (or less) than you should. However, for some, it is simply not financially feasible to come up with what is often hundreds of thousands of dollars in cash.

• Selling the Business: Another option – often as a last resort – is to sell the business rather than keeping it. Once you sell it, you and your spouse would split the profits in an equitable manner in accordance with the Illinois Marriage and Dissolution of Marriage Act. This typically is not a popular option, yet it is sometimes necessary during a divorce.

• Continue to Co-Own the Business: You and your spouse can also make an agreement to continue to co-own the business after the divorce is final. For couples who are on fairly good terms and who are able to be amicable with one another, co-ownership is not as outlandish as it sounds. 

Whatever your situation, our firm is here to help you work toward a practical solution with minimal disruption to your company. When it is practical, we can also work toward a settlement outside of court to reduce the time and expense on your end. 

Should You Sign a Marital Agreement to Protect Your Business?

A marital agreement can be one of the strongest ways to protect a business before a divorce ever happens. A prenuptial agreement is signed before the wedding. A postnuptial agreement is signed after the couple is already married. Both can spell out who owns the business and how it will be handled if the marriage ends.

These agreements can save time, money, and stress later on. They can also protect business partners who do not want an ex-spouse involved in the company. For an agreement to hold up, it must be in writing and signed by both spouses. Each spouse should fully share his or her finances. Neither spouse should feel pressured to sign. Having separate lawyers review the agreement can also help. Our firm can draft or review a marital agreement so your interests are clearly stated.

Contact a DuPage County, IL Asset Division Attorney 

When you are a small business owner, getting a divorce can place a strain on your finances. At the Law Office of Ronald L. Hendrix, P.C., we can help you determine a fair value for your business, as well as provide you with recommendations as to what business-related divorce decisions would be in your best interests. To schedule a free consultation with our knowledgeable Plainfield, IL business division lawyer, call our office today at 630-355-7776.