If you are looking for a divorce attorney in Glenview, it is important to understand how divorce affects the business or executive career you built over the years.
In Glenview, many marriages involve family businesses, stocks, and annual bonuses. These assets are not divided like a bank account because determining their value requires careful analysis.
That is why choosing a divorce attorney in Glenview with financial experience can make a difference in protecting what you built and preserving the portion the law recognizes as marital property.
Here, you will learn how spousal maintenance works when income is very high and where your case is handled. Keep reading and make informed decisions from day one.
Why Property Division Is Different When There Is a Business or Executive Position
Basically, dividing a house or a car is relatively straightforward. A business or executive compensation package, however, can change in value every year and depend on one person’s work.
These assets can also combine money earned before and during the marriage. Separating each portion requires accounting records, employment contracts, and input from a financial expert.
At KHK Family Law & Divorce Attorneys, we coordinate the work of forensic accountants and business valuation professionals. This allows each figure to rest on solid, verifiable evidence.
When Is a Family Business Marital Property?
Under 750 ILCS 5/503, a business created during the marriage is considered marital property. In contrast, a business founded before the marriage generally remains nonmarital property.
Marital property, in simple terms, refers to assets that belong to both spouses and are subject to division by the court. However, certain circumstances can complicate that classification:
- Marital funds were used to pay business debts or expenses.
- Personal and business accounts were mixed.
- Both spouses worked in the business without receiving fair compensation.
- The business increased significantly in value because of one spouse’s work during the marriage.
Finally, a properly drafted prenuptial agreement can change the analysis. If you signed one, the court will generally honor the terms both spouses agreed to regarding the business before getting married.
Executive Compensation: Stock Options, RSUs, and Bonuses in Divorce
Executives often receive part of their compensation through stock or future bonuses. These benefits can complicate a divorce because they may not yet be available when the marriage ends.
Even so, 750 ILCS 5/503 presumes that stock options and restricted stock awarded during the marriage are marital, even when they have not vested. These benefits include:
- Stock options: The right to purchase company shares at a fixed price.
- RSUs: Shares that a company awards after a certain period of employment.
- Bonuses: Annual or retention payments tied to performance goals or remaining with the company.
- Deferred compensation: Money earned today that the company pays years later.
To divide these benefits, the court examines whether each benefit rewards past, present, or future work. That distinction determines which portion is marital and which portion belongs to the executive.
How a Business Is Valued in an Illinois Divorce
Valuing a business means determining how much it is worth in monetary terms today. Although that sounds simple, two experts can reach different figures depending on the methods and data they use.
The spouse who controls the company may also control access to its information. As a result, the other spouse needs access to financial statements, tax returns, and bank records.
One important detail: Illinois does not divide the owner’s personal goodwill. Instead, the court considers the value the business would retain even if that owner left tomorrow.
3 Business Valuation Methods Used in Illinois Courts
Courts do not impose a single valuation method. Instead, they hear from experts on both sides and determine which approach best reflects the business’s circumstances.
Each method examines the company from a different perspective, and the choice can significantly affect the final result. The three approaches most commonly used in Illinois divorce cases are:
- Income approach: Calculates value based on the future earnings the business is expected to generate.
- Market approach: Compares the business with similar companies that have recently been sold.
- Asset approach: Adds the value of what the business owns and subtracts what it owes.
For example, a consulting firm may depend heavily on its earnings, while a real estate company may derive much of its value from its properties. Choosing the wrong method can therefore distort the division.
1. The Time Rule for Dividing Unvested Stock and Compensation
The time rule, also called a coverture fraction, separates the marital portion of a benefit that an executive earns over several years of employment.
It divides the time worked during the marriage by the total time required for the benefit to vest. That percentage indicates which portion is considered marital and subject to division.
For example, if RSUs take four years to vest and three of those years occur during the marriage, 75% is generally treated as marital. The remaining portion belongs to the executive.
2. Reimbursement to the Marital Estate for Personal Contributions to a Business
Imagine that your spouse founded a business before getting married but grew it substantially during the marriage. That effort does not disappear simply because the business is nonmarital property.
Under 750 ILCS 5/503, a spouse’s work on nonmarital property can constitute a contribution from the marital estate. A reimbursement claim generally requires evidence of:
- Significant personal effort by the spouse in the business.
- A substantial increase in the business’s value resulting from that effort.
- Evidence that the spouse did not receive reasonable compensation for the work.
- Documentation clearly establishing the connection between the work and the increase in value.
At KHK Family Law & Divorce Attorneys, we reconstruct that growth using accounting records. This helps show how much the marriage contributed and supports a claim for an appropriate reimbursement.
3. Spousal Maintenance When Income Exceeds the Legal Threshold
When one spouse runs a business or earns an executive salary, spousal maintenance can become a complicated issue. Income may fluctuate and may not always appear in full on paper.
Spousal maintenance is a payment one former spouse makes to the other after divorce. In Illinois, 750 ILCS 5/504 establishes how courts determine whether maintenance applies, as well as its amount and duration.
In high-income families, a statutory threshold can change the calculation rules. That figure determines whether a formula applies or whether the court must consider the relevant factors.
What Happens When Combined Income Exceeds $500,000 Per Year
If the couple’s combined gross income is not more than $500,000 per year, Illinois applies a statutory formula. Once that threshold is exceeded, however, the formula no longer applies.
The court then determines maintenance by considering all relevant factors and must explain its reasoning. Factors that can carry significant weight include:
- The standard of living the couple enjoyed during the marriage.
- Each spouse’s current and future income and assets.
- The length of the marriage.
- Each spouse’s ability to support themselves independently.
- Career sacrifices one spouse made for the family.
That is why documenting the marital lifestyle matters: travel, private schools, clubs, and household expenses. This evidence helps the court determine an appropriate and sustainable amount.
Property Division in Glenview: Jurisdiction and Process
Glenview is located in Cook County, so your divorce is handled under the rules of its Circuit Court. Knowing where your case is filed can help avoid delays.
Divorces involving businesses or executive compensation can also take longer than a typical case. Business valuations and financial document exchanges add additional stages to the process.
A divorce attorney in Glenview familiar with the local courts can anticipate deadlines, coordinate experts in advance, and keep your case moving without unnecessary surprises.
Contact a Glenview Divorce Attorney at KHK Family Law & Divorce Attorneys
Dividing a business requires financial precision and legal strategy. This guide is informational, but every case requires a personalized review before you make decisions.
At KHK Family Law & Divorce Attorneys, your divorce attorney in Glenview, we analyze your assets, identify the marital portion, and protect the value you worked hard to build.
Schedule a consultation with KHK Family Law & Divorce Attorneys today. We will review your business, executive compensation, and available options for protecting your financial future.
