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Self-Employed and Divorcing?

On Behalf of | Jun 1, 2023 | Divorce Self-Employed

Property division during a typical
divorce can be complicated to say the least of it. If your property is also the
source of your income, as is the case for many self-employed couples that
run a small business together, matters are sure to be even trickier. Success
in such a situation will require some understanding of what to expect,
helpful servings of preparation, and the keen eye of a legal professional.

Here are a few key points to keep in mind when divorcing as one half of
a self-employed couple:

Home, office, or both: Trying to decide who gets to keep the family home is easily one of the
biggest hot spots of divorce, capable of turning an uncontested divorce
into a heated contest. Before you concede your home to your spouse in
exchange for other property, remember that it may also be your office
if you are self-employed. Will a new living space be able to support your
personal business ventures? Will your spouse even take advantage of the
office space the home affords them? If you are more likely to keep down
the path of self-employment, you should probably be the one who keeps
your home/office.

Account division: If you were self-employed and partnered with your life partner, it is
highly likely that there are many bank accounts and credit lines with
both of your names on them. You will need to determine how to divide those
joint accounts fairly so that you both aren’t stuck in one account
after your divorce finalizes. Forgetting to divide joint accounts and
establishing new ones only in your name opens the door for your spouse
to try to get some subtle revenge, perhaps by drawing money out of the
account without your permission or using the shared credit line for purchases
and racking up your debt.

Business valuation: The small business you shared with your spouse will be considered as
a form of property or a financial asset during your divorce. You will
need to have that business fully appraised by a professional to learn
its true value; once this is established, it can be weighed fairly in
property division. A business valuation should consider physical property,
real estate property, and intellectual property your business owns, as
well as its profits, its reputation with clients and competitors, and
its likelihood to grow or depreciate in the near future.

Self-Employed Doesn’t Mean Going It Alone

Gill Law Group, PC and our Irvine divorce attorneys are here to help you
manage your divorce case as a self-employed professional. We understand
that the troubles of the entire situation can bring you down, and we would
like to be the legal team that helps lift you back up. With outside-the-box
strategies and a history of appreciative
client testimonials, you can trust in us to uphold your best interests and provide comprehensive
assistance in all matters, from dividing your property to valuating your business.

Call 949-868-5268 or contact us online
to schedule a complimentary consultation.