In addition, Michael was invited to help edit and write the foreword to William Eddy’s landmark book on Divorce and Personality Disorders, Splitting (1st edition). Splitting is the definitive legal and psychological guide to safely navigating a high-conflict divorce from an unpredictable spouse. Michael also contributed a chapter to Love and Loathing, an important book on divorce and personality disorders.

Practice Areas

Divorce

Family law, like no other area of the law, is often forced upon a client, often causing immediate emotional anxiety and financial hardship. Michael Roe understands that many issues associated with divorce can be emotional and cause a high level of stress and anxiety. Michael works with his clients to try to find ways to reduce that stress while providing experienced and assertive representation. Our intent is to obtain the best possible resolution at the lowest cost both financially and emotionally.

Psychological Disorders and High Conflict Divorce

Divorce when one spouse suffers from a psychological disorder such as Narcissistic Personality Disorder or Borderline Personality Disorder can be especially challenging. Accounts of efforts by the person with a disorder to alienate the children from the healthy parent or falsely accuse the healthy parent of abuse or domestic violence are conveyed to our offices often. Such behavior on the part of the spouse with a psychological disorder can manifest itself in the healthy partner and children, depriving partner and child of a loving, supportive relationship that they yearn for and deserve. If you are concerned that your spouse has a psychological disorder (whether properly diagnosed or not) and have doubts about how to move forward to protect yourself and the lives of your children, reach out to DuPage County divorce lawyer Michael Roe for help.

Parental Alienation

Michael Roe is one of the few lawyers nationally that has developed experience and expertise in managing child custody cases involving Parental Alienation. Divorce is challenging from many perspectives, and many parents allow their anger to spill over into the lives of their children. When a parent acts to make the child angry with, or afraid of, the other parent, it is called parental alienation.

The primary weapons parents use to alienate their children against the other parent include:

• Badmouthing
• Interfering with the Child’s Relationship and Time with the other Parent
• Causing the Child to Reject the other Parent
• Undermining the Child’s Relationship with the other Parent

Child Custody

One of the most stressful aspects of any divorce can be child custody and parenting time issues. Michael is an experienced child custody trial lawyer who can effectively protect clients’ rights in court as well as manage our client’s best interests in alternative dispute resolution settings like mediation.

When determining custody plans, courts will often look at the stability of each parent’s living situation, each parent’s ability to provide the care the child needs and if each parent will support the child developing a relationship with the other parent. Michael has had decades of experience not only in the study and research in clinical areas that affect child issues, and with experience himself as a court appointed mediator and parenting coordinator; this experience allows Michael the expertise to work well with and manage interactions with court appointed clinicians (such as custody evaluators), parenting coordinators, and guardians ad litem. If you have doubts about custody arrangements regarding your child, consult divorce attorney Michael Roe in DuPage County.

Complex Marital Property and Financial Issues

Michael has a well-deserved positive reputation in the area of child custody, and his experience managing complex property and financial issues in divorce is equally notable. With graduate training in MBA school, along with decades of experience managing property valuations cases, financial and cash flow issues, retirement fund and stock option issues, and complex trials involving businesses and high-income concerns (Michael was the successful trial lawyer on a property valuation case that achieved national attention for its novel approach on valuation issues and closely held retained earnings in divorce). Only recently, Michael successfully tried a lengthy case involving the applicability of minority discounts in a marital estate with large land holdings.

Business Valuations in Illinois Divorce Cases

Business valuation is one of the most complex and contentious issues in Illinois divorce proceedings, particularly when one or both spouses own an interest in a closely held business. Illinois courts require trial judges to determine the fair market value of such business interests for equitable distribution under the Illinois Marriage and Dissolution of Marriage Act (IMDMA), 750 ILCS 5/503. This determination implicates nuanced accounting, financial, and legal principles.

Michael Roe was the trial lawyer for an important Illinois case (Marriage of Liszka) that discusses retained earnings in a closely held corporation. The Illinois Appellate Court’s decision in In re Marriage of Liszka, 2016 IL App (3d) 150238 is significant in shaping how trial courts assess business valuations and claims of dissipation of assets in divorce cases involving closely held businesses. 

The Legal Framework for Valuing Businesses in Divorce

Under 750 ILCS 5/503(d), marital property includes all property acquired during the marriage, except for property excluded under statute. Ownership interests in a business—whether through a corporation, partnership, or limited liability company—are often marital property subject to equitable division.

Illinois trial courts have broad discretion in valuing marital property but must employ a rational method supported by the evidence and consistent with sound accounting principles. As the Illinois Appellate Court emphasized in In re Marriage of Gunn, 233 Ill. App. 3d 165 (2d Dist. 1992), valuation “is a question of fact and will not be disturbed on appeal unless it is against the manifest weight of the evidence.”

Methods of Business Valuation in Illinois Divorce

Illinois courts commonly accept several methods of determining business value, including:

• Income approach – based on future anticipated earnings or cash flow.
• Market approach – comparing the business to similar companies sold under comparable conditions.
• Asset approach – based on the value of tangible and intangible assets minus liabilities.

In In re Marriage of Schlichting, 2022 IL App (2d) 210583, the appellate court reaffirmed that trial courts have discretion to choose a valuation methodology so long as it is grounded in credible expert testimony and evidence. The key requirement is that the court explain its reasoning and reflect evidence-supported findings.

The Role of Expert Testimony

Expert testimony plays a pivotal role in Illinois divorce cases involving business valuation. Courts often rely on valuation professionals—such as CPAs and business appraisers—to assist in determining fair market value. In In re Marriage of Preston, 241 Ill. App. 3d 479 (3d Dist. 1993), the court held that judges are entitled to choose between competing expert opinions, provided that their determination is supported by evidence.

More recently, In re Marriage of Hamilton, 2023 IL App (4th) 220942 illustrated how courts weigh expert valuations differently when one expert adjusts for excess officer compensation, retained earnings, or non-recurring income. The court emphasized that trials involving expert testimony require credibility assessments, economic context, and the purpose for which valuation is made.

Goodwill, Retained Earnings, and Personal vs. Enterprise Value

One recurring issue in valuation disputes is the treatment of goodwill. Illinois distinguishes between enterprise goodwill (which may enhance marital business value) and personal goodwill (which is typically excluded as a nonmarital asset). In In re Marriage of Talty, 166 Ill. 2d 232 (1995), the Illinois Supreme Court held that personal goodwill—value based on an individual’s reputation, skill, or relationships—cannot be transferred and therefore is not part of the marital estate.

Closely held businesses often accumulate retained earnings, which may raise questions about whether those funds constitute distributable marital property or merely a reflection of corporate ownership. In In re Marriage of Lundahl, 396 Ill. App. 3d 495 (2d Dist. 2009), the court examined this issue and held that retained earnings can be considered a marital asset if the controlling spouse has the ability to distribute them but chooses not to.

Additionally, cases such as In re Marriage of Koenig, 2012 IL App (2d) 110503 demonstrate that analytic clarity is necessary when determining whether retained corporate earnings represent dissipation or legitimate business reserves.

Dissipation of Business Assets

Illinois law prohibits a spouse from dissipating marital assets once a breakdown in the marriage has occurred. Dissipation refers to the use of marital funds or property for a non-marital purpose during or after the irretrievable breakdown. As recently reaffirmed in In re Marriage of Hamilton, 2023 IL App (4th) 220942, a spouse alleging dissipation must provide clear proof of the improper expenditure.

When one spouse controls a business, dissipation claims often focus on expenditures deemed excessive, self-serving, or unrelated to business purpose. Illinois appellate courts have held that failure to account for business funds, diverting corporate profits, or manipulating retained earnings can constitute dissipation, as seen in In re Marriage of Patel, 2013 IL App (1st) 112571.

Courts’ Discretion in Weighing Valuation Factors

Ultimately, the trial court’s valuation must reflect both the objective financial realities and the credibility of evidence presented. The court in In re Marriage of Foster, 2014 IL App (1st) 123078 noted that a fair valuation should consider historical financial data, economic context, market conditions, and the spouse’s degree of control.

The valuation date also matters. Illinois courts generally use the date of trial or another appropriate date under 750 ILCS 5/503(f), allowing judicial flexibility in volatile market conditions. Adjustments may be appropriate where the business value fluctuates significantly after separation.

Practical Considerations for Divorce Attorneys and Business Owners

Attorneys managing valuation issues should consider:

• Retaining qualified valuation experts early in the case.
• Obtaining all necessary financial records, tax returns, and shareholder agreements.
• Evaluating whether any portion of income or retained earnings represents personal goodwill or nonmarital property.
• Anticipating dissipation claims when business control is unilateral.

With experience in both finance and trial advocacy, practitioners can bridge the gap between accounting and litigation, ensuring their client’s position on valuation is supported by the record.

Conclusion

Business valuation in Illinois divorce cases requires a fusion of legal and financial analysis. Courts evaluate expert testimony, corporate structure, retained earnings, and goodwill to determine marital value. Understanding the prevailing appellate authority—such as Schlichting, Hamilton, and Lundahl—is essential for attorneys navigating these cases and for business owners seeking a fair outcome under Illinois law.

Domestic Violence

Acts of violent behavior in marriages and other relationships cut across socioeconomic, racial, religious, and ethnic lines, often going unacknowledged or unreported. If domestic violence occurs in a child rearing environment, children, whether the victims or witnesses of abuse, can bring trauma into their adulthood Illinois recognizes that domestic violence takes a toll on victims and society as a whole and passed into law the Domestic Violence Act as a path forward for victims of domestic violence. Reaching out to a divorce lawyer in DuPage County can help to end this cycle of violence. Michael has decades of experience successfully managing domestic violence cases.

Parentage (Paternity)

If you are the father of a newborn child or child not yet born, there are steps you can take that can impact the legal responsibilities and rights you have toward that child, including custody, financial support for the child, and visitation authorization.

Post Decree Support

In some instances, the orders of a decree may need to be modified after being entered by the court, thereby affecting a divorce or other family law matter.

In addition, our family law and dispute resolution practice manages post-decree issues of contested child custody, restoring visitation with children, prosecuting or defending Orders of Protection, and child removal (out of state) cases.

Practicing in most counties in Northern Illinois with many complex divorce cases managed in DuPage County, Kane County, Will County, DeKalb County, divorce attorney Michael Roe has specific experience and expertise in divorce trial practice, divorce mediation, and Collaborative (no-court, non-litigated) Family Law. He is a longstanding member of the DuPage and Kane County Bar Association, is a court certified mediator and guardian ad litem, and continues to be recognized as an expert and resource in the area of psychology and family law.