Self Employed and Getting Divorced? You Need to Read This

Getting divorced is going to be difficult in some way no matter what your situation. When you’re self-employed, however, there are added concerns and potential financial complications that can surprise and devastate you if they aren’t addressed. But a little preparation can go a long way to minimizing these issues. Here are some tips for reducing the financial anxieties of getting divorced while self-employed.

1. You won’t have your spouse’s benefits anymore. If you are self-employed and benefiting from the insurance that a spouse with a more traditional job receives, the change in your medical costs alone could have a huge impact on your budget. This change should be factored into your plans and into any financial settlement you receive.
2. Similarly, you may be about to lose your safety net. If your spouse works a standard 9-5, they probably have more job security than you do. While you can’t get fired, your job is dependent on the success you secure for your company. Keep this in mind and bring this up during legal discussions about finances. Also make a plan for how you are going to manage your finances once you’re on your own. This will both help you determine what to fight for and make the steps toward financial independence less daunting.
3. While you may be at risk financially as a result of your divorce, your partner and/or their legal representative will likely be looking for flaws in your accounting. As a self-employed individual, you have more deductibles, and there may be suspicions that you’ve taken advantage of legal loopholes or are not reporting all your earnings. Make sure your papers are all in order and be well-educated about your own financial situation. You don’t want questions to catch you off guard.
4. Speak with an attorney about the appropriate time and manner for separating your finances. This may mean severing ties through joint accounts and planning for division of shared investments. You need to ensure that your business isn’t connected financially to your former partner. Running your own business is stressful enough without the worry that someone you are no longer partnered with emotionally or professionally could cause harm to your business finances or in any other way affect the future success of your business.

Are You Considering Getting a Divorce?

Divorce can be tough on the separating partners as well as their children. However, if you’ve reached the point of no return, you should consider getting a lawyer to help guide you through the often tumultuous process. At Colgan & Associates, our family law attorneys will take the time to learn about you and your family, to find the best solution for everyone involved, especially your children. We’ve helped families of all sizes and situations find peaceful resolutions, and we can help you, too. Contact us today for more information, or to set up a consultation.