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Divorce and Self-Employment: What You Need to Know

Divorce is rarely ideal for any party involved. The process can become even more complex, however, when one or both spouses is self-employed. That’s because determining assets and assessing financial considerations is often difficult.

Spouses often express concern that a self-employed former partner may attempt to paint an inaccurate picture of their income. On the other hand, self-employed spouses worry that the prosperity of their business could be put in jeopardy as a result of impending divorce. That would have lasting impact on employees and vendors, as well.

Thankfully, there are ways you can protect yourself and your assets. Use these suggestions to get started.

Information Gathering is Essential

As with any other endeavor, compiling details and amassing appropriate documentation are the best ways to ensure a truthful and thorough process. If you’re self-employed and getting divorced, you must consider how the separation of assets will affect your business. If you’re divorcing a self-employed individual, it’s essential to ensure no assets are being hidden or manipulated to appear counter to reality.

This is also an ideal time to contact Volusia County attorneys well-versed with divorce and family law matters. You’ll benefit from the valuable insight and guidance these professionals can provide.

Beware of Income Manipulation

Similarly, it’s wise to consider all potential outcomes in your divorce proceedings. While it may be tough to comprehend or accept that a former spouse might purposely lie and try to hide assets, the fact is that this scenario can and does occur.

As an example, those working for a separate entity are typically furnished with an IRS W-2 form. This document details the taxes withheld throughout the year. By contrast, self-employed individuals report income in other ways. Cash income, for instance, is very difficult to monitor once it’s been furnished.

Other methods used in the past to hide self-employment assets include writing off travel expenses that are inaccurate or non-existent, excessive equipment purchase or replacement, and similar tactics. If you suspect your spouse may be attempting to hide assets in this manner, it’s best to contact a dependable Daytona Beach divorce attorney who can help you navigate this sometimes-complex situation.

Plan for the Future

Beyond finances, divorce including self-employment reveals other complications. For instance, when minor children are involved, scheduling conflicts could arise, particularly with long and irregular hours that sometimes go along with self-employment.

In addition, if both you and your spouse are self-employed in separate endeavors, there are other considerations to mull. Furthermore, if both spouses are owners of the same company, you’ll have to determine how and if operations can continue.

While it’s unrealistic to think that your work duties will change overnight, it’s nice to know that there exist Ormond Beach attorneys who can help you make sense of your divorce and plan for the next years ahead.

Consult a Qualified Attorney

Divorce is a highly-emotional experience. The process also often comes with great uncertainty about both the near and long-term future. At the same time, you still need to focus on performing work, school, and life duties. The situation can quickly seem cumbersome and even overwhelming. But it doesn’t have to be.

Instead, when you team with a dynamic divorce attorney in Daytona Beach, you get the peace of mind that your unique case is given full and thorough consideration and care. In fact, we’ve assisted countless individuals and business across Central Florida since 1983.

Along with divorce and family law, Rice Law Firm also concentrates in the areas of business and corporate law, criminal defense, and condominium/homeowners association law. In addition, we’ve built a solid reputation as the personal injury attorney in Daytona Beach. Contact us today to discuss your divorce and get answers to all your legal questions.