Focusing On Family Law – And You
If you and your spouse own a business together, regardless of its size, it’s probably a source of pride. There’s a good chance that both you and your spouse have put a lot of work into building it and keeping it running.
If your marriage ends, the business could become a significant factor. This is particularly true if you didn’t have intimate knowledge of the company’s finances. In that case, you have to pay close attention to signs of sudden income deficit syndrome.
How does sudden income deficit syndrome occur?
Sudden income deficit syndrome occurs if your ex takes steps to make it appear as though the business makes less money than it actually does. This reduction in income usually coincides with the divorce or with the time period that they were considering a divorce.
You may not realize that anything was amiss with the company. It may have appeared that it was just as successful as always, so the sudden claim of a reduced income would likely be a shock.
Why would sudden income deficit syndrome occur?
People who are going through a divorce may do this to improve their side of the property division process. By making the business appear less profitable, they can work toward a larger share of the marital assets while still maintaining the business. Once the divorce is over, they have the benefit of the successful company.
It can be difficult to prove what’s going on with the business. Having someone on your side who’s familiar with small business and the owners divorcing may be beneficial in these cases. You must take steps to protect yourself during your divorce, which can be difficult, but could help you to get yourself started on the best financial footing.
