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Illinois Law - What is the "Marital Portion" of a Business?
Often, only one spouse really runs the business.
Is the other spouse entitled to any share of the business's value? Usually, the answer is "yes."
The greater the share of a business that is deemed "marital" or "community property," the
more evenly a judge will divide the value of the business between
the spouses.
Here are some of the questions a judge is likely to ask in determining
how much of the business is "marital" or "community" property.
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How long was the business in operation before, as opposed to during, the
marriage? (The longer it was, the more the business is "separate" property.)
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How much was each spouse responsible for the business's value? (The greater the
level of joint participation, the more the business is "marital" property.)
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How much did each spouse contribute in other ways to the marital partnership (for
example, by keeping house, entertaining, and raising the children)? (If one
spouse kept the house and raised the children, that work is likely to be
viewed as a contribution to the business.)
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How much of the business growth was due to the spouses' efforts? (This is a
tricky one. If, say, the husband's brother was really the driving force, or
the parties were simply in the right place at the right time, then a "separate"
business is likely to remain "separate," even if the wife was a dedicated
homemaker.)
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