Can a Divorce Judge Order a Business Valuation Even If Both Spouses Agree on Value?

 Posted on June 16, 2025 in Divorce

When two spouses in Illinois agree on the value of a business during divorce, they may assume that’s the end of it. After all, if neither party is disputing the number, why would the court get involved?

But under Illinois law, the judge has the authority, and in many cases the obligation, to question that valuation and even order a formal business appraisal, particularly when financial complexity, ownership interest, or the potential for future disputes are at play. Even a couple’s agreement can be overridden in the interest of equitable division.

This issue is especially relevant in divorces involving family businesses, professional practices, or self-owned enterprises. It is also an area where a Cook County, IL divorce attorney like Attorney Ross with financial credentials — such as a CPA, Court-appointed guardian ad litem (GAL), and mediator — can make all the difference.

Judicial Discretion in Illinois During Property Division 

Under the Illinois Marriage and Dissolution of Marriage Act (IMDMA), judges must divide marital property equitably, not necessarily equally. That includes assessing the fair market value of each asset and a business interest is no exception.

Section 750 ILCS 5/503 gives the court broad authority to classify, value, and divide marital and non-marital property. If there is reason to doubt that the parties’ agreed-upon valuation reflects reality, whether due to conflicting disclosures, undervalued goodwill, or potential tax avoidance, the judge can require a formal valuation by a neutral expert or compel additional financial disclosures.

Even when both spouses claim to "agree" on the value of a business, judges are aware of the ways that strategic cooperation may mask deeper inequities. One party may undervalue the business to preserve it, or the other may accept a lower number in exchange for leverage elsewhere, for example, with parenting time. When minor children are involved, the financial stability of each household becomes even more important.

Case Example: In re Marriage of Schlichting (2015 IL App (2d) 140682)

In Schlichting, the husband owned a business, and the trial court accepted his valuation. However, on appeal, the court ruled that the judge should have considered a more objective, evidence-based valuation, particularly because the husband’s tendency to litigate against family members was inadequately addressed. The decision highlighted that valuation is not just about past income; it is about the totality of an asset’s worth, including intangible elements like reputation and client base.

This case underscores why courts have wide discretion to go beyond surface-level agreements and seek expert input, especially when one party has more control over financial records.

Real-Life Scenarios: When Agreements Are Not Enough

Here are just a few common situations where a judge might order a valuation despite both spouses’ purported agreement:

• Family-Owned Businesses: Where both parties have informal access or knowledge, but no formal records.

• Professional Practices: Valuing a law, dental, or accounting practice often includes goodwill, which is harder to quantify.

• Imbalanced Access to Information: One spouse may have historically managed the finances and reporting.

• Suspected Manipulation: Income suppression or deferred contracts during the separation period.

Even a cooperative divorce can be financially lopsided if one spouse does not fully grasp the business’s value or the tax implications of keeping it.

How a CPA and Financial Expert Attorney Helps with Business Valuation During Divorce

A divorce attorney who is also a Certified Public Accountant brings exceptional insight into financial disclosures, balance sheets, business structures, and valuation methodologies. This hybrid expertise allows clients to:

• Anticipate when the court may intervene in a "simple" agreement

• Prepare thorough financial affidavits and disclosures

• Propose mutually acceptable valuation experts

• Strategically weigh the cost of a formal valuation vs. a negotiated resolution

Work With a Cook County, IL Divorce Attorney Who Understands Business and Divorce

When it comes to dividing complex financial assets, experience matters. Our Rolling Meadows, IL family law attorney has practiced family law since 1984 and brings the precision of a Certified Public Accountant to every case. Whether you are a business owner, spouse of one, or just trying to avoid a costly dispute, we can help you reach a fair, informed resolution.

Call The Law Offices of Curtis Bennett Ross, L.L.C. at 312-984-1514 to schedule your free limited consultation.