Divorce is full of problems. That is just part of the process when you are ending a long-term committed relationship where two parties have become so involved in each other's lives. However, divorce when one spouse is self-employed it is likely to add more problems to the pile. While self-employment doesn't affect the divorce itself, it does affect the financial aspects of divorce.

Self-Employment and Hiding Assets

When one spouse is self-employed, a major worry is that they can somehow hide assets from the other spouse. This actually should be a worry as income from self-employment can be surprisingly well hidden, but often not hidden enough.

When one spouse is self-employed, if you have an amicable relationship, then hiding assets may not be a worry. However, if there is a lot of tension in your divorce, as there often is, it may be in your best interest to seek out the help of a forensic accountant. Often self-employed individuals are no stranger to shuffling money around to support their business, making the act of hiding assets not immediately apparent to the untrained eye. However, the help of a forensic accountant can help you make sure they are being honest.

Self-Employment and Spousal Support

One of the primary issues of self-employed spouses is not so much hiding assets, but rather gathering a concrete amount of income for spousal support. Often in self-employed professions, their amount of income can fluctuate rapidly. Furthermore, what is to stop them from taking less work during a divorce so it makes their income look smaller?

In this circumstance, often courts will not look at recent income, but rather average income. It functions much in the same way of a spouse who quits their job to take a lesser paying job to slip spousal support. The courts will examine past income and their ability to earn in order to work out spousal support payments. However, if they have always been a secondary earner to your primary earnings, you may very well have to pay spousal support to them.

Divorce is never a simple situation, and self-employed spouses make things even trickier. If you are divorcing and need help, contact us today.