Do I Have to Split My Business in an Illinois Divorce?

 Posted on July 11, 2025 in Asset Division

Businesses are considered property and can be subject to division in an Illinois divorce. However, that is only if the business is characterized as marital property. Illinois is an equitable distribution state. Unlike in a community property state, marital assets in Illinois are divided based on what is fair rather than equal. Several factors can influence whether or how your business is divided. A Wheaton, IL divorce lawyer can help you understand your rights and protect your business interests.

Is a Business Always Marital Property in Illinois?

A business is not automatically considered marital property in Illinois. Under Section 503 of the Illinois Marriage and Dissolution of Marriage Act, marital property includes assets and debts that you obtain during the marriage. It does not matter how those assets are titled. Non-marital property can include anything acquired before the marriage. However, gifts and inheritances are commonly excluded, unless they end up commingled with marital assets. If you have a valid premarital agreement under 750 ILCS 10/, commonly called a prenup, you may have addressed how to divide property during divorce.

If you started your business before you got married and kept it completely separate from your marital finances, the court may consider it separate property. However, this can get complicated. Even a business started before your marriage might partly become marital property under the right circumstances. Did the business’s value grow significantly during the marriage? If so, was it because of contributions made by both you and your spouse? For example, if you invested marital funds or your spouse worked for the business, it could become marital property regardless of when you started it.

How Is a Business Valued for Division in an Illinois Divorce?

According to Section 503 of the Marriage and Dissolution of Marriage Act, the court can appoint experts to examine business records, financial statements, tax returns, and even customer lists. The experts may use various methods to value a business, including:

• Asset-based approach: Calculating the value of assets minus liabilities

• Income approach: Estimating future earnings and converting them into a present value

• Market approach: Comparing the business to similar companies that have recently sold

The process for each method can be highly complex, and the type of business you have will determine the best approach. During this part of the process, having a legal representative on your side ensures your business is valued fairly and accurately.

What Are the Options for Dividing a Business During an Illinois Divorce?

Because of Illinois’s equitable distribution process, dividing your business does not mean it will be split down the middle. Some common options for dividing it fairly include:

• One spouse can buy the other spouse’s share of the business, allowing it to stay intact under a single owner.

• Both spouses can keep an interest in the business and continue to run it together.

• The business is sold, and the proceeds are divided between the spouses.

• The spouse who wants to keep the business may give up other marital assets, like retirement accounts or equity in the marital home, to balance the division. 

The judge will consider factors like the length of your marriage and your financial situation when deciding how to handle the business.

Call an Experienced Wheaton, IL Divorce Attorney Today

If you are facing divorce and own a business, the DuPage County, IL divorce lawyers at Andrew Cores Family Law Group can help. Contact us at 630-871-1002 to schedule a free consultation and discuss your options. Businesses complicate the divorce process, but having legal guidance helps to streamline the complex legal requirements.