Naperville, IL Professional Practice Divorce Attorney

Skilled Divorce Lawyers Representing Professionals in Naperville, Illinois

If you own a professional practice, you may have some valid concerns about what will become of it in a divorce. These kinds of divorces often involve complex valuations and questions about ownership of the practice. A Naperville, IL divorce lawyer can help you safeguard your most valuable assets, representing you in direct negotiations or litigation.

Established in 1979, Fay & Farrow is a reliable source of legal advice and advocacy for clients throughout DuPage County and beyond. We represent doctors, lawyers, dentists, and many other professionals whose practices may be at stake in a divorce. We will handle your case with care, working toward a resolution to protect your interests in the long term.

Are Professional Practices Marital Property?

In Illinois, a professional practice may be considered marital property if it was acquired or built up during the marriage. Courts look at when you started the practice and how much effort you and your spouse contributed after you wed. If you founded your business before marriage but grew it later, the increase in value can be marital.

Spouses often play indirect roles in a practice. Maybe one partner handled bookkeeping, client intake, or marketing while the other focused on billing and services. Even these contributions can qualify as marital efforts. The court may assign a portion of the practice's value to marital property, and the rest to separate property, based on each spouse's contributions.

If you and your spouse started the practice together, it is likely fully marital property. In that case, the entire value will be subject to division. Both parties must disclose financial records, client lists, and any measures of goodwill to help the court reach an equitable result.

How Do You Value a Professional Practice in an Illinois Divorce?

Valuing a professional practice can be complex. Illinois courts generally rely on expert testimony. A business valuation specialist will examine financial statements, tax returns, and revenue trends. They may use one or more valuation methods, such as income, market, or asset approaches.

The income approach projects future earnings and discounts them to a present value. This method works well for practices with stable revenues and predictable cash flow. The market approach compares your practice to similar firms that have sold recently, adjusting for size, location, and specialty. The asset approach adds up tangible and intangible assets, like equipment and goodwill. Goodwill represents the practice's reputation and client loyalty.

Your attorney can help select a qualified expert and gather the necessary documents. You may need profit and loss statements, balance sheets, client rosters, and licensing details. The valuation report will become key evidence in negotiations or at trial. Both sides have the right to challenge assumptions or demand additional analysis before the court accepts a final figure.

What Happens to a Professional Practice During Asset Division?

During asset division, the court aims for an equitable split of marital property. If a professional practice is marital, its value will be divided just like any other asset. You may choose to buy out your spouse's interest by paying them a lump sum or agreeing to transfer other assets of equal value.

Sometimes, neither spouse can take full ownership. In those cases, the court may order the sale of the practice. Proceeds from the sale are then divided according to the court's formula. Selling a practice can disrupt careers and client relationships, so couples often negotiate to avoid a forced sale. Our firm will help you weigh these options and propose a plan that protects your professional and financial interests.

Contact a Naperville, IL Divorce Lawyer

At Fay & Farrow, we understand the unique challenges of valuing and dividing a professional practice. Call 630-961-0060 or contact our Naperville, IL divorce lawyer to set up a free consultation.