What effect can a divorce have on a family business?

By Chuck Roberts
December 06, 2016

Generally speaking, divorce does not result in liquidating the family business. Generally speaking, and obviously there are exceptions to this, the person who’s operated the business in the past will continue to operate the business in the future. The divorce lawyer's obligation is to help the parties reach an opinion of value as to what that business interest is really worth and to structure compensation to the spouse who is not going to receive the business for their interest. That could mean periodic payments, it could mean a share of the profits in the future, it could mean a portion adjusted over time as the business profitability fluctuates. In the vast majority of cases, the businesses have represented the livelihood for the parties. It wouldn’t make any sense to liquidate that interest and leave the parties without any source of income. A family lawyer will try to find a way to structure it so that the person who has operated it can continue to operate it.

Chuck Roberts is family lawyer at Momkus McCluskey Roberts, LLC, one of the largest law firms in DuPage County, Illinois.

Back To Top

December 06, 2016
Categories:  FAQs

Add A Comment


Allowed HTML: <b>, <i>, <u>, <a>



Divorce Lawyers

Certified Divorce Financial Analyst

Find all CDFAs

Divorce Mediators

Find Divorce Mediators

Business Valuators / CPAs

Find Business Valuators / CPAs

Collaborative Practice

Find Collaborative Practitioners

Reason for your Divorce

Why did your relationship end? If there's more than one reason, choose the strongest factor.

Money Problems/Arguments
Physical/Emotional Infidelity
Physical/Mental Illness
Physical/Emotional Abuse
Alcoholism/Addiction Issues
Basic Incompatibility

Copyright © 2017 Divorce Magazine, Divorce Marketing Group & Segue Esprit Inc. All rights reserved. Reproduction in whole or in part without prior written permission is prohibited.