Collaborative Divorce for Business Owners Getting Divorced in Illinois

 Posted on May 18, 2023 in Divorce

Without a doubt, owning a business complicates the divorce process. Unlike an employee of a company who can show his or her earnings on a weekly paycheck, business owners’ income varies significantly. Furthermore, business assets are often considered marital assets. This means that the non-owning spouse also has a right to a portion of the business’s value.

The situation becomes even more complex legally and emotionally if the spouses co-own a business together.

If you or your spouse own a business and you plan to divorce, you may want to consider using the collaborative law process to determine the division of marital property, child custody, and other divorce issues.

Benefits of the Collaborative Law Process for Business Owners

The collaborative process is a cooperative divorce resolution method during which the spouses, their attorneys, and other parties work together to resolve any disputed issues. Collaborative divorce is a popular choice for spouses who recognize their marriage is no longer salvageable, but still want to avoid an adversarial divorce litigation process.

Unlike Courtroom proceedings, the collaborative process is also confidential. The spouses will not have to worry about their business financials being available to the public.

Each spouse retains a collaborative divorce attorney, and the spouses and their respective attorneys hold a series of meetings during which they discuss the disputed issues and negotiate solutions. One of the most useful aspects of the collaborative process is that the spouses can involve neutral third-party experts in the discussions. Working with business valuation experts, accountants, and other financial professionals can help divorcing business owners make sound decisions.

A collaborative divorce requires the spouses, their attorneys, and other parties to agree to a certain set of rules. Among other things, the parties will agree to share information freely and negotiate in good faith. The attorneys will not be forced to use discovery tools such as interrogatories or subpoenas to uncover financial information about the business.

Parties also agree to keep everything that's discussed during the collaborative process confidential. Most importantly, the parties agree not to threaten litigation. This is the foundation of the collaborative process. Everybody involved must be willing to resolve the divorce without going to Court.

Contact our DuPage County Collaborative Divorce Lawyer

Collaborative divorce is an alternative resolution method that prioritizes cooperation, confidentiality, and common sense solutions to divorce disputes. If you or your spouse own a business and you plan to divorce, collaborative divorce may be the best way to work out issues such as property distribution, ownership of the business, child-related matters, and more. 

Collaborative divorce lawyer Nicholas W. Richardson can help you resolve conflicts and end your marriage amicably. Call 847.873.6741 for a confidential consultation.

Source:

https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=3804&ChapterID=59