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Business valuation necessary if plan is to exchange assets

Many changes occur in a married couple's life when they choose to divorce. If they have children and/or own a business together, the challenges that arise may feel overwhelming at times. When it comes to dividing assets, the Illinois court system follows equitable division guidelines. Some couples agree to forfeit certain assets in exchange for others. If this plan involves a business, a business valuation is typically necessary to determine net worth.

Once value is assessed, it can also be determined to what percentage of that value each spouse is entitled. One spouse may offer to buy out the other by making period payments until all shares are paid in full. If forfeiting other assets in exchange for business shares, the most common types of exchanges involve real estate, luxury items, vehicles and retirement accounts.

It's important to be on guard for any hidden assets trouble that may arise. Although unlawful, many spouses have faced such problems when their former counterparts commit secret acts to keep certain assets from being subject to division in court. For instance, if a former spouse suddenly begins making loans to friends, giving luxury gifts to family members or moving money from a joint account to a separately owned one, it may be a sign that something questionable is going on.

As far as business valuation, asset division and other financial-related issues in divorce are concerned, seeking clarification of the laws that govern such matters before determining how best to proceed is wise. An Illinois family law attorney who is also experienced in business and commercial law matters would be a good source of support. Acting alongside an attorney can increase the chances of obtaining a favorable outcome.

Source: tgdaily.com, "3 Ways to Protect Your Business from Divorce", Ian Reading, Accessed on June 8, 2017

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