The divorce process can vary greatly from one couple to another, depending on a variety of factors. Couples with children will have a different experience than two spouses who do not have children. If one or both spouses are business owners, their divorce may include challenges or steps unique to their situation. Owners of a cash-based business in Pennsylvania who have decided to move forward in the divorce process have some important things to remember.
In the divorce process, the business of a party has to be considered along with the other assets and finances. It is incredibly important that one ensures that neither he or she nor the other party are hiding any assets or under-reporting income. Providing accurate information regarding the business’ income can prevent huge discrepancies between what the business allegedly earns and the average yearly spending of the family.
Hiding assets, property or other financial considerations in a divorce can have lasting consequences. These may include penalties in court and possibly being reported by the IRS. For these reasons, the most complete account of the income and expenses of the cash-based business can lead to a smooth divorce with minimal stress.
If one does bring his or her business into the divorce, it may be beneficial to get assistance with someone experienced with the division of assets. This person may be able to explain what is needed and what the courts expect, which can ease the tension of the business owner. Those in Pennsylvania working through a divorce should be aware of the financial aspects involved for anything that they may bring to the process.
Source: courierpostonline.com, “FORUM: Business owners should think before divorce”, Bari Z. Weinberger, May 8, 2015