Valuing a business in divorce can be a very complex undertaking. Often a spouse’s interest in a business is the largest asset in the marital estate. The three commonly used business valuation methods are: the income approach, the asset accumulation approach and the market approach. The calculations and adjustments that need to be made in valuing a business depend in part upon what type of legal and tax structure the business has. LLCs are the most popular structure for new businesses and LLCs often chose to be taxed as a partnership. Partnerships are taxed differently than S corporations and C corporations. Other differences between these entities are the ownership restrictions placed on S corporations and the the greater flexibility LLCs have in allocating income to owners. Considerations with respect to valuations include: tax affecting the earnings; the existence of ownership restrictions; the cash flow available to owners; the impact of a deficit restoration obligation; and, unrealized capital gains. If you have questions about valuing a business in a divorce case, call me — Chicago divorce lawyer Tanya Witt at (312) 948-9884 or email The above blog post does not constitute legal advice. Please discuss your specific rights with an attorney.