What Business Owners Should Know About "Double Dipping" in Divorce

 Posted on October 08, 2025 in Finances and Divorce

Divorce is typically a complicated process, but it can be significantly more complex for business owners. Business valuations alone add several steps to the asset division process. If you own a business and are considering divorce, you also need to know about "double dipping." This happens when the same income is counted twice, and it can have serious financial consequences.

Illinois courts try to prevent double dipping, but it can still happen if financial details are not handled carefully. The DuPage County, IL business valuation lawyers at Andrew Cores Family Law Group help business owners avoid these mistakes. We ensure property and income are treated fairly during divorce.

What Is Double Dipping in an Illinois Divorce?

"Double dipping" means using the same money or income in two different ways during a divorce. For example, imagine you own a company that earns $200,000 a year. The court might use that income to determine the business’s value and then award your spouse a share of it during the property division. Then, if the court also uses that same $200,000 to calculate monthly spousal support, they counted one income twice. This creates an unfair situation where the business owner ends up paying twice for the same money.

How Does Illinois Law Address Double Dipping?

The Illinois Marriage and Dissolution of Marriage Act (750 ILCS 5/) outlines how to divide property and determine spousal support. Under Section 503, the court decides what property has to be divided. A business that was created or grew during the marriage is usually marital property. Section 504 explains how spousal maintenance, also known as alimony, is calculated based on each spouse’s income and needs. The court can also issue temporary support orders while the divorce is in progress.

In the 2005 case In re Marriage of Schneider, the Illinois Supreme Court said that judges must be careful not to count the same income twice. This means separating money that represents a business’s value from income that is actually available for ongoing support.

Common Examples of Double Dipping in Divorce

Some ways that double dipping may appear in the context of divorce include:

• When business profits are used to value the company, and also to calculate maintenance

• When money kept in the business is treated as both part of its value and as income

• When the owner’s salary or personal effort is counted as part of the business’s overall value

• When one spouse receives a payout for their share of the business, and the other still pays maintenance from the same income

How To Avoid Double Dipping in an Illinois Divorce

Avoiding double dipping takes planning and expert assistance. A qualified business appraiser can tell the difference between a company’s total value and the owner’s personal income. In some cases, it may be better to use an asset-based method, which looks at what the business owns. This approach can help prevent the same income from being counted twice.

Clear and honest financial records are a great start. When both sides and the court understand where the money comes from, it is easier to divide property and calculate support fairly. Your lawyer can work with financial experts to explain the numbers clearly and paint a full picture for the court.

Schedule a Free Consultation With a Wheaton, IL Divorce Attorney

Complex divorces need experienced legal representation. The DuPage County, IL business valuation lawyers at Andrew Cores Family Law Group have represented clients across Illinois since 1996. We know how to ensure that your divorce decree is fair.

Our firm believes that preparation is a key to success. That is why we carefully review every detail of your case so we are ready to negotiate a fair settlement or go to trial if needed. Contact our office today at 630-871-1002 to schedule a free consultation.