One of the most contentious aspects of a divorce is finances. This is especially true for self-employed individuals. It’s important to make sure you’re paying extra attention to the financial aspects of your divorce if you work for yourself. Here’s what you should know. 

Making Full Financial Disclosure 

Whether you work for yourself or not, you must make full financial disclosure to your ex-spouse during your divorce. This means that you need to calculate your average sales, expenses, debts, and assets, and provide documentation for each. Since self-employment income can be so variable, you may need to provide financial records for more than six months prior to filing for divorce. Often, self-employed individuals are accused of not making full financial disclosure, because it’s easier to hide profits and assets when you’re in control of the reporting, so it’s important to be upfront with all of your financial documents. 

Working with an Accountant 

Unless you have a background in finance or accounting yourself, it can be quite difficult to keep track of your business finances alone. If you run a relatively small business, you may have been able to handle your own finances before the divorce, but this doesn’t mean the same will be true during the divorce. Your ex-spouse and their attorney will be taking a very close look at your financial records, so consider having an accountant make sure they’re up to snuff. 

Protect Your Profits and Property 

If you were self-employed before you got married, many of your business assets, profits, and property will not be eligible for distribution. However, if your spouse worked for the business or you started the business after you got married, your spouse could have a stake in what you’ve earned. You can protect your property and your income by identifying anything related to the business that you owned prior to your marriage and keeping it separate from any property or assets acquired during the marriage.

Are You Self-Employed and Getting a Divorce in New Jersey? Call Now 

If you’re considering getting a divorce and are self-employed, it’s important that you consult an experienced New Jersey divorce lawyer as soon as possible to protect your rights and best interests. There’s a lot on the line when business owners divorce. Call Erlina Perez today to book a consultation to discuss your divorce and how it’s impacted by your self-employment.