When you and your spouse work hard to build a business together, you have to be sure that you know what’s going on with it. All too often, one spouse, often the wife, will hand over the financial duties to the other spouse. This works as long as the marriage is going well; however, if the marriage crumbles, the spouse who doesn’t know much about the company’s finances will be left in the dark.
Some people have to deal with sudden income deficit syndrome, which has to do with the spouse who controls the family business taking steps to make it appear as though the business isn’t very profitable (even though it is). They do this using a variety of methods, but it is illegal in all cases.
As part of the divorce process, you have to clearly report all income, assets, and liabilities. By trying to hide the business’ income, a spouse is trying to cheat the system. It can prevent you from getting the divorce settlement you’re due if they’re underreporting the business’ information.
One of the ways you may protect yourself is by adding a forensic accountant to your divorce team. This professional is able to review the information from the company, as well as other sources like public records, and try to unearth the truth about it’s financial health.
It’s imperative that you work toward a divorce settlement that’s in line with your legal rights. Your attorney can help you to do this by working to protect your rights and explaining your options. Try to think logically as you go through this because your ex isn’t going to be thinking about what’s in your best interests now.