How Do They Decide What a Business Is Worth During a Divorce in Illinois?

 Posted on December 14, 2025 in Divorce

Illinois divorce courts determine a business's value by reviewing financial records, examining how the business operates, and applying accepted valuation methods. The goal is to understand the true economic value of the company so the court can divide property fairly.

As of December 2025, Illinois continues to follow an equitable distribution model that requires accurate business valuations. If your divorce involves a business, a West Chicago, IL divorce attorney can help you understand how the court reviews these records and what to expect as the case moves forward.

What Is Considered Marital vs. Non-Marital Business Property in Illinois?

Before the court decides how much a business is worth, it must determine whether the business is marital property, non-marital property, or a mix of both. Under the Illinois Marriage and Dissolution of Marriage Act, specifically 750 ILCS 5/503, marital property includes assets gained during the marriage. This means a business that was started during the marriage is usually considered marital.

A business that began before the marriage is often treated as non-marital. However, if the business grew during the marriage because marital money or labor helped it, part of the business may be treated as marital. For example, if marital funds were used to expand a DuPage County business, that growth may be considered marital property.

Sometimes, marital and non-marital property mix. This is called commingling. When that happens, courts examine financial records, work history, and contributions from each spouse to decide which parts of a business fall into each category.

How Do Divorce Courts Value a Business in Illinois?

After the court decides what share of the business is marital, it must determine the value of that share. Under 750 ILCS 5/501, the court divides property in a fair way, but not always an equal one. A clear valuation helps support a fair result.

Courts look at several factors when deciding value. These may include:

• The type of business and industry conditions

• Past and current income streams

• Operating expenses and overhead costs

• The condition of the local and national market

• Assets owned by the business, including equipment and property

• The business's reputation and customer base

The court may also review documents such as tax returns or profit-and-loss statements to understand the business's financial health.

How Do Courts Handle Business Debts and Liabilities?

A business valuation must include its debts, which lower the value of a business. Business debt can include loans, credit lines, unpaid bills, leases, or tax obligations. If the debt was taken on during the marriage, it is often considered marital.

If the debt is tied to non-marital activity, it may stay with the spouse who owns that portion of the business. Courts review when each debt was created and why it was taken on to understand how it affects valuation and the division of marital assets.

Do You Need a Professional Business Valuation for an Illinois Divorce?

Business valuations can be complicated. Many businesses have changing income or assets that are difficult to measure. Because of this, a professional valuation is often helpful. Forensic accountants, certified appraisers, and other experts review records and use standard methods to determine value. These methods may include looking at income, comparing the business to similar companies, or reviewing assets and equipment.

A professional valuation may also reduce disagreements. When both spouses have access to the same information, it becomes easier to understand how the final value was reached. In West Chicago and surrounding DuPage County communities, local business appraisers familiar with Illinois law can provide valuations that courts will accept.

Schedule a Free Consultation With a Winfield, IL Divorce Attorney

If your divorce involves a business, an attorney can guide you through each step of the valuation process. Hensley Sendek Law practices in DuPage, Cook, Will, and Kane counties and has experience helping clients with complex financial issues in divorce.

Call 630-358-9029 today to schedule a free consultation with a West Chicago, IL divorce lawyer.