Divorce Considerations for Someone Self-Employed

 Posted on December 18, 2023 in Divorce

When one or both spouses are self-employed and getting a divorce in Illinois, it can make the divorce process more complex. Self-employed individuals face unique considerations when it comes to divorce, including the valuation of their business, determining income for child support and alimony purposes, and protecting business interests. If you are self-employed and getting divorced, contact a lawyer to assist you.

The Valuation of Your Business

One of the primary concerns for self-employed individuals during divorce is the valuation of their business. Determining the value of a business can be complicated, involving factors such as assets, liabilities, revenue, and future earning potential. It is crucial to enlist the help of a qualified business valuation professional who can provide an accurate assessment of the business’s worth. This valuation will play a significant role in the division of marital assets and potential spousal support

Income Determination

For self-employed people, determining income for child support and alimony purposes can present challenges. Unlike salaried employees with a consistent paycheck, self-employed people often have fluctuating income streams. It is essential to provide accurate and transparent financial records, including tax returns, profit and loss statements, and bank statements, to establish a fair and accurate representation of income. Consulting with a divorce attorney who specializes in self-employment cases can help ensure that income is properly calculated.

Protecting Your Business Interests

Self-employed individuals must take steps to protect their business interests during a divorce. It is also important to keep personal and business finances separate, maintain accurate records, and document any contributions made by the spouse to the business. Taking these precautions can help safeguard the business from potential disputes and ensure its continued success.

Tax Implications for Self-Employed People

Divorce can have tremendous tax implications for self-employed people. Consider consulting with a tax professional to understand the potential tax consequences of dividing assets, transferring ownership, and receiving alimony or child support payments. Proper tax planning can minimize tax liabilities and ensure compliance with tax laws.

Contact a Wheaton, IL, Divorce Attorney

If you are self-employed and getting a divorce, contact the experienced Warrenville, IL, divorce lawyer with Hensley Sendek Law. Call 630-358-9029 for a free consultation.