Divorce Lawyers for Protecting Professional Practices in Kane County

Elgin Attorneys for Doctors, Lawyers and Accountants Going Through Divorce

Illinois divorce proceedings are based on the Illinois Marriage and Dissolution of Marriage Act (IMDMA). A key aspect in a divorce proceeding is the manner in which property, assets, and debt are divided in an equitable manner between the spouses. All marital property (the property the spouses had acquired during the marriage) is subject to division unless classified as non-marital property. The equitable asset division is to be based on consideration of all relevant dynamics in the marriage, which in some cases may include a spouse's professional practice.

For example, a doctor, dentist, attorney, or accountant may have opened their private practice after the marriage was consummated. If this is the case, the value of the practice is considered to be marital property. If the practice existed prior to the marriage, any contributions to the business (monetary or otherwise) from the opposing spouse would be considered marital property. Due to the inherent complexity of these cases, it is strongly recommended that parties retain an attorney with significant experience in this aspect of family law.

At Ariano Hardy Ritt Nyuli Richmond Lytle Goettel P.C. (AHR), our experienced attorneys can help you understand the amount of marital property you are owed. We will fight to ensure you receive the assets you are legally entitled to.

Considerations in Valuation of a Professional Practice

The overall goal in the process of business valuation is to accurately assess the fair market value of the practice. This is the price which a willing buyer will pay a willing seller, who is under no pressure to sell, and with complete knowledge of relevant facts. When this value is determined, it can be added to the overall list of marital property to be divided.

In order to balance the interest in the business for the opposing spouse, a proportion of other assets may be awarded. In many cases, a neutral third-party appraiser or financial professional may be needed to accurately determine this value.

The Goodwill Involved in the Value of the Practice

Goodwill may be classified as the value in a practice or business which extends beyond the tangible assets of the entity. Goodwill is intangible in nature and may be divided between enterprise and personal goodwill (personal goodwill being specifically allocated to the owner). Institutional or enterprise goodwill is an aspect of the business itself, and it is not directly influenced by the personal effort of the owner.

Personal goodwill is usually a more significant factor in a private professional practice as compared to other types of businesses where if the owner were to leave, the entity would remain functional. For example, how would Dr. Smith's dental office operate in the absence of Dr. Smith?

Divorce Attorneys for Spouses Who Own Professional Practices in St. Charles IL

A key function in the valuation of a professional practice in matters of divorce is the assessment of the value of the personal goodwill. The lawyers at AHR have been representing spouses in these more complex divorce proceedings for over 35 years. To discuss your case with one of our family law divorce attorneys, contact the office today at 847-695-2400. We serve clients in Elgin, South Elgin, Huntley, and throughout Illinois.