Each divorce comes with a unique set of challenges. In situations in which one or more spouse is self-employed, there are some substantial and distinct obstacles that couples tend to face. For people who are divorcing individuals that work for an employer, there is a common concern that a spouse is attempting to downplay how much he or she makes. Conversely, self-employed individuals often fear that a spouse will attempt to take money from them. No matter which side of the equation you are on, it is often a wise idea to obtain the assistance of an experienced divorce lawyer.
Ways to Protect Yourself During a Divorce
If you are self-employed and going through a divorce, it is important that you take the steps necessary to protect your assets. While property division is a particularly complex subject, it can be even more challenging when self-employed individuals are involved.
To safeguard your finances during a divorce, there are several recommended tips that you should make sure to follow:
- Gather as many documents as possible related to your assets and financial situation.
- Hire an accountant who can examine your paperwork and determine your company’s worth.
Self-employed spouses often have a much easier time hiding assets than other types of workers. By hiding details about their company, spouses sometimes attempt to receive more from child support, property division, and spousal support.
If You are Divorcing a Self-Employed Spouse
If you are divorcing a self-employed spouse, there are several safety precautions you should make sure to follow, which include:
- Gather information about your spouse’s spending habits. Every business utilizes some type of software that contains financial details. Make sure you have as comprehensive financial records as possible before proceeding with a divorce.
- Work with an accountant or business evaluator who can determine if your spouse has hidden any assets. There are a number of ways that courts evaluate a business's value in a divorce: IRS Revenue Ruling is one of the best resources in determining what factors are critical in regards to valuing a company. Some of the factors that might be important include the nature of the business and history of the company since its creation, the economic outlook, the book value of the stock and financial condition of the company, the business's earning capacity, whether the company has goodwill or other intangible values, and the market price of stocks of corporations engaged in the same or similar business ventures.
Speak with an Experienced Divorce Attorney Today
No matter if you are self-employed or your former spouse is, it is best to obtain the assistance of an experienced divorce attorney to navigate this complicated legal matter. Do not hesitate to speak with an experienced attorney at Vayman & Teitelbaum P.C. today.