Divorce and Business Ownership
SIDS: Sudden Income Deficit Disorder
If your spouse owns a business, watch out for SIDS: Sudden Income Deficit Disorder. Once it becomes clear there is a divorce looming in the near future individuals become more protective. Its only a part of human nature, we are looking to protect ourselves, our assets and our own interests. However, if your spouse has major control over his or her own Business, or they are a major shareholder, they might start to 'hide' some of their marital assets - which can include the value of the Company.
Most commonly the business-owning spouse is much more apt to act quickly, and will began "hiding" business assets, or spending business income. If the company was profitable during years of marriage, but suddenly becomes "failing", "unprofitable", or "invaluable" the non-business owner should hire a forensic accounting expert. Sometimes this mischievous activity can occur months before divorce talk is even brought to attention. Sadly, most non-business owners are not aware of the financial structure of the company, and in these cases an expert is of major value. We have helped numerous clients discover hundreds of thousands of hidden dollars when they (and their prospective attorneys) had no idea. The Company has hired their own bookkeepers and attorneys to keep assets hidden - so why shouldn't you hire someone to be sure your interests are being treated fairly? Here, at Teal Consulting Group, we look forward to helping those who need help in understanding exactly what is taking place within the Business. We can decipher the financial statements, we can find non-related business expenses, and to provide a fair business value. We have experienced messy divorce cases, we should add, very messy divorce cases. We have uncovered hidden assets, hidden distributions, secret bank accounts, recently purchased vacation properties, and unfortunately much more.. You may believe your soon to be ex-spouse is being honest and fair, but 'trust' is poor choice when it comes to anything divorce. |
Not all marital dissolution cases require the services of a Forensic Accountant, however, at times it may be helpful to have this additional resource. Some of the reasons to retain a Forensic Accountant in marital dissolution are as follows:
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Learn more:
Divorcing Women: Here's Where Husbands Typically Hide Assets, from Forbes Five Ways to tell if your Husband is hiding Assets, from Forbes How to Protect your Business in a Divorce, from INC. Family Business and Divorce: Six Step Survival Guide, by Chicago Business |
Consider a Business Valuation Today!If you're planning to sell your business, an accurate valuation completed by a certified professional will ensure that all the hard work you've put into it will be taken into account and included in the sale price. Business valuations are also essential when seeking investment capital, taking on a partner, planning for the future, or selling shares.
While many business owners have an idea of what their business is worth, that idea can quickly wither in the face of challenges from the IRS or other sources. A business value without any solid backing as to where this said value comes from, is more than just a mathematical equation. Therefore, getting an accurate business valuation is crucial. Here at Teal Consulting Group we enjoy assisting our clients with their Business Valuations. When possible, we get to sit down and discuss the day-to-day operations at each and every business, we look forward to tours and walk-throughs of facilities, and we ask in depth questions to really understand each individual we help. We believe that a Business Valuation is a mixture of science and art, and we have yet to find two valuations that are exactly the same! Let us help you, contact us today for more information! |