What Every Small Business Owner Getting Divorced in Illinois Needs to Know

If you own a small business and are considering divorce, there are a few very important things you need to know. Usually, the biggest issues for Illinois small business owners in a divorce are determining the value of the business and determining the business owner’s income.

One important component of the business’s value is the value of the business’s assets. This includes the things the business owns, like equipment, vehicles, computers, real estate, etc. It also includes funds in the business’s bank and investments accounts. A second important component is the business’s debts. This includes things like mortgages, vehicle loans, credit cards, small business loans, etc. As an Illinois small business owner considering divorce, it is very important for you to have a comprehensive list of your business’s assets and debts.

In Illinois, a business owner’s income can be more than just what is shown on tax returns. Often, businesses write off expenses on their tax returns that are still included in income when calculating child support and maintenance (spousal support). A common example of this is depreciation. As a small business owner considering divorce, you should be tracking exactly what you pay yourself out of the business. You should also make sure to separate your business and personal expenses. It is best practice to have separate business and personal accounts and to pay your personal expenses from your personal account and your business expenses from your business account.

Determining value and income usually requires an expert witness, like an appraiser or a forensic accountant. A knowledgeable divorce attorney can assist you with hiring qualified experts. At Mitchell Highlander, we regularly assist small businesses owners in Madison, St. Clair, and Bond Counties with divorce, and we would be happy to assist you as well.