Chicago Illinois Business Interests

Divorces can have significant and severe impacts upon business interests of a spouse. Divorce may trigger buy-out provisions in shareholders’ agreements or member’s agreements. Divorce proceedings may also cause lenders to attempt to invoke call provisions in loan documents. A business owner’s life’s work can be placed in jeopardy by the other spouse even though that spouse did little or nothing to contribute to the success of the business.

For the business owner who plans to seek a divorce, review of all business documents is essential, followed by proper planning. Post-nuptial agreements or negotiation of a marital settlement agreement prior to actually filing for a divorce can remove the uncertainty that may trigger unfavorable business results. The other spouse may cooperate in such approaches if the other spouse stands to lose financially if the business is disrupted.

In the event of a battle relating to business interests, proper valuation, discounting based upon minority interests, unmarketability, or illiquidity, and employment of outstanding valuation experts leads to success. The valuation of the good will of the business is a battleground with which we are well acquainted.