What to Expect When Valuing a Business in a Divorce

 Posted on October 16, 2025 in Division of Assets

Divorcing as a business owner can bring uncertainty, especially when legal proceedings interrupt your daily operations. The way your business and business interests might be divided as part of the division of assets in a divorce could also have significant ramifications for the future of your company. 

When your company’s future is at stake, you should seek qualified legal representation. At Pesce Law Group, P.C., we understand just how valuable your business assets may be. A DuPage County, IL divorce lawyer can help you get an accurate valuation of your business while standing up for your rights.

Why Accurate Business Valuations Matter in Divorces

In Illinois, a business could be classified as marital or separate property. When a business is marital property, it will have to be divided up between the spouses (750 ILCS 5/503), necessitating a full appraisal so that everyone has a clear understanding of its value.

Even if your business is not subject to division, however, you may still wish to get a valuation. If the value of your business is over- or underestimated, it could have a serious impact on asset division, costing you thousands of dollars. Our firm can represent you in negotiations for property division outside of court as well as litigation, fighting for a favorable distribution of assets.

Ways of Valuing a Business in an Illinois Divorce

Trying to determine the value of a business is not always a straightforward matter since there are multiple methods of appraising a business. The three most common methods include:

• The income approach: This method looks at the business’s potential to generate revenue in the present and future.

• The market approach: This method looks at the recent sales of comparable businesses to estimate a fair market value.

• The asset approach: This method looks at the business’s total assets and liabilities to determine its immediate value.

Our firm works with a network of professional business valuators and accountants who can help you get a fair and accurate estimate of how much your business is worth.

Accounting for Goodwill in Business Valuations

In addition to assets and income potential, you may also have to account for goodwill when valuing a company. Oftentimes, business goodwill cannot be directly measured, as it relates back to the company or owner’s reputation.

Whether goodwill counts as marital property depends on its type. If it belongs to the company itself (enterprise goodwill), it may be divided. If it is based on the owner’s personal reputation (personal goodwill), it usually is not. A professional business valuator can account for goodwill in the appraisal, factoring in the prestige and branding of the company.

Contact a DuPage County, IL Divorce Attorney

At Pesce Law Group, P.C., we know what is at stake for business owners during a divorce. Our firm can make sure that you enter into negotiations for property division with a clear idea of how much your company is worth, drawing on insights from outside experts.

Our Naperville, IL business valuation lawyers are here to protect your interests in and outside of the courtroom. To schedule a free initial consultation, call us at 630-352-2240 today.