THE SELF-EMPLOYED SPOUSE IN A DIVORCE OR SEPARATION: INTENTIONALLY LOWERING INCOME
If you are married to a spouse who is self-employed, you must be wary of issues which would not be present if that same spouse were a W-2 income earner. The self-employed spouse may be completely in control of what his or her income shows as being on a business tax return. Self-employed spouses often plan for years so as to make it appear that their income is lower than it actually is hoping to be ordered to pay less child or spousal support should a divorce or separation ever occur. The business itself may have value which could be considered by the Court to be a “marital asset” and therefore, become part of the assets which are divided between the parties pursuant to NY’s equitable distribution laws. The Court may appoint a forensic accountant to dig deep into the finances and operations of the business to ultimately determine the true income of the business-owner spouse AND the value of the business. The law impacting the determination of a business-owner spouse’s income and business value in a divorce or separation is complex. If the other spouse is not proactive and diligent, that spouse could lose out on substantial amounts of child support, spousal maintenance and asset awards in a divorce or separation. THE POLLACK LAW FIRM, P.C. is here to help! Call today for a free consultation…(516) 938-3330.
By Robert B. Pollack, Esq., principal attorney at The Pollack Law Firm, P.C. : Our firm is focused solely on Nassau and Suffolk County divorce, separation and all other issues of matrimonial law, family law and mediation.
The Pollack Law Firm, P.C., serving clients in Nassau and Suffolk County, is always available to assist and represent parties in divorce and all other matrimonial and family law matters. Please call today to schedule a free consultation: (516) 938-3330.
DISCLAIMER: This article is intended to provide only general information for entertainment purposes and should never be relied upon as legal advice. One should seek the assistance of experienced matrimonial counsel to assist in explaining the law, options and making important decisions in any divorce, matrimonial or any family law matter. By reading this article, no attorney / client relationship arises in any manner whatsoever.