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Complexities of Divorce When You Own a Business

On Behalf of | Dec 22, 2015 | Divorce

Having significant assets can complicate a divorce alone. Owning a business or multiple businesses? That can really complicate things. This is because a business can have both tangible and intangible values. Determining just how must value there is can become a contested property division issue. If this sounds like this could be your divorce scenario, being fully informed is the first step.

When searching for the right divorce attorney, it is important that you work with one who has connections and past experience in working with financial experts. This is more than just an accountant but someone who can help place a value on your business. Often called a “business valuation,” this is how your business will get a number to its value. Forensic accounts can help weed through the complexities that could be coming your way.

Shifting of Business Income And Assets

Another important issue to take note of is any sudden activity your former spouse may be conducting on behalf of the business. He or she may be doing things to either suddenly make the business look more or less profitable.

Here are some signs to watch out for:

  • Your spouse is spending more than ever on other luxuries but at the same time is claiming the business is not doing very well.
  • You find expenses are being paid for by the business rather than from a personal account.
  • Just as you start discussing separation or divorce, your spouse tells you the bad news about how the business is tanking.
  • When you ask for bank statements and other financial documents related to the business, your spouse ignores you or refuses to provide any such documentation.

As you can see, while you may be wishfully thinking everything will be simple and straightforward in valuating your business chances are it may not be. Do not take any further chances and make sure your attorney is knowledgeable in divorce and business valuation matters.

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