You’ve built something extraordinary. Now let’s protect it—and you—with compassion and smarts.
You’re Not Just a Balance Sheet
As a business owner, you’ve poured your heart into building something meaningful. Now, facing high net worth divorce, it might feel like everything you’ve worked for hangs in the balance. Your legacy, your purpose, your contribution to the world, is on the line. They’re completely valid. The good news is that, according to the Harvard Business Review, divorce doesn’t have to derail your career. https://hbr.org/2015/04/divorce-doesnt-have-to-derail-your-career
The KHK Business Advantage: Law Meets Strategy
Very few attorneys have the business savvy required for high-net-worth divorce like KHK. Our managing partner earned an MBA from the University of Chicago Booth School of Business https://www.chicagobooth.edu/, giving us a crucial strategic edge in complex divorce cases regarding owned businesses.
This unique combination of legal and business expertise means that we will know what to look for in your business plan and financials to protect your assets as best as possible, and regularly deploy advanced strategies like forensic accounting to ensure assets are properly valued and classified—either protecting them from being considered marital property or aggressively classifying them as marital property if we are representing the other side. We also have a network of expert witnesses from the University of Chicago Booth School of Business https://www.chicagobooth.edu/faculty to call on for their expertise in assessing nonmarital property assets you can keep after a contested divorce.
The Illinois Law Governing Your Business: Understanding Marital Property
Your biggest concern is likely the division of your company. In Illinois, the starting point for every divorce is Section 501(a) of the Illinois Marriage and Dissolution of Marriage Act (IMDMA). This section defines Marital Property as all property acquired by either spouse subsequent to the marriage, subject to a few exceptions.
https://www.ilga.gov/documents/legislation/ilcs/documents/075000050k503.htm
- The Critical Takeaway: Unless you have a prenuptial agreement, any increase in the value of your business, any real estate, or any investments made between the date of marriage and the date of dissolution is potentially subject to division. Your business, though founded by you, must be valued to determine the marital portion.
- Our Competitive Advantage: KHK Law understands the nuances of business valuation and how to rigorously trace non-marital assets (like pre-marital investments or inheritances or legacy businesses) that deserve to be protected from division. We fight to ensure that the court only divides what is legally and fairly defined as marital property.
High-profile divorces illustrate how judges and lawyers dissect business interests, and provide warning signs for what can go wrong. Here are some case studies:
- The Michael Polsky Case (Illinois): The divorce of the Chicago energy magnate Michael Polsky provides a warning for business owners. The Illinois Supreme Court ruled that the magnate’s company was considered marital property subject to division because the company’s value appreciation was somewhat tied to his efforts during the marriage. It was an immigrant’s rags-to-riches story until it wasn’t. Based on an Illinois Supreme Court decision, the former Mrs. Polsky received a reported $184 million. This underscores the risk that even a company started before the marriage can be partially divided. https://caselaw.findlaw.com/court/il-court-of-appeals/1333863.html
- The Larry Ellison Case (California): The tech titan and Oracle founder’s third divorce highlights the role of prenuptial agreements. While Ellison’s vast wealth and Oracle stock were largely shielded by a prenup, his ex-wife received substantial property and cash, demonstrating that while agreements can protect the core business, a spouse still walks away with significant value when proper planning is lacking or challenged. These cases show that without expert legal counsel, even the most successful entrepreneurs risk losing everything, without the proper legal team.
- The David Heroy Case (Illinois): This is what happens when property is not properly legally argued as nonmarital. Despite the husband running the business, his former wife’s homemaking contributions were found of no less value than her husband’s. The court awarded her a larger share of the marital estate. https://www.illinoiscourts.gov/Resources/be7523e4-d6fd-4e2a-bc03-b2a347a984ba/120205.pdf
Don’t risk your legacy on inexperience. Contact KHK Law today for a confidential, strategic consultation. Let us put our advantage to work protecting what you’ve built.
