If you are self-employed, this can mean that you face some obstacles when you file for divorce. In this guide, you will learn more about divorce when one spouse is self-employed. Keep reading for tips on how to proceed.
Owning a Business
Many self-employed people own their own businesses. If both spouses have some ownership over the business, this can become a slightly stickier situation. For instance, a self-employed individual will not receive the traditional W-2 documentation. This could make accusing one spouse of hiding funds easier.
If you own your business and are self-employed, you need to compile all the documentation possible to ensure you can present all the facts in court. Financial documentation and information about assets and liabilities is crucial for your attorney to look over. Your attorney may advise you to hire a forensic accountant, or a specialized accountant who looks over financial documents for evidence.
Your books also need to be in order for you to go through the divorce process. When you have full knowledge of your assets and can prove your assets in court, you often appear trustworthy.
Being self-employed calls for good work-life balance. Being self-employed does not mean you may not be required to pay child support. The court will assess the amount of money you make and the amount of parenting time you have in order to determine a fair amount
You also need to remember that the value of a business does not necessarily signify the amount of money an individual must pay in child support. Rather, the courts assess individual income.
Sometimes, self-employed people take loans out to start a business or pay for supplies. If the spouses take on this debt together, they are both liable for paying it. You can bring these debts to court to discuss which party is responsible for paying off the debt.
Property division is always difficult in divorce and can be even more difficult when you share business-related supplies. If a settlement cannot be reached, the court will determine who receives the property in the divorce finalization.
Hiring an Attorney
The laws do change a bit when you are self-employed. For example, your self-employment can impact the amount of money you are expected to contribute to spousal support or child support. Self-employment can also impact the types of bills you are expected to pay off. For these reasons, you need a strong family attorney on your side.The Lowry Law Firm understands that divorce is always difficult, but the process can become even more stressful when you are self-employed. Call our offices today to set up an appointment with attorneys who understand the struggles ahead of you. We can set up a consultation to discuss your plan and answer any of your questions or concerns.