Self-employment has many advantages, from setting your own schedule to pursuing your passion while making a living. Individuals who are self-employed often must think quickly and creatively to address issues along the way. One issue that may cause considerable problems now and in the future is divorce.
The financial implications of divorce can have drastic consequences for you and your profits. This is especially true if your divorce turns ugly or drags on before a settlement is reached. What can you do to protect yourself and your self-employment goals?
Every divorce is different. Consider the following questions to help you better prepare for your divorce and to protect yourself in the long-run:
- Is uncontested divorce an option? Uncontested divorce takes much less time and expense to settle compared to a contested divorce. Uncontested divorce is not right for everyone, but it is important to think about which issues are worth fighting to protect yourself in the long-run.
- How will your finances be impacted? Divorce can significantly alter your income and financial goals. It is important to consider how your monthly income will be affected and what steps you may be able to take to keep you on track to reach your financial goals.
- Do you know how alimony is determined? The specifics will need to be discussed with your attorney, but it is helpful to learn about alimony and how you will be affected by it once your divorce is finalized. Spousal support, or alimony, is determined by the courts, and each spouse's age, standard of living and earning ability is taken under consideration when determining alimony.
- How will your property be divided? Any property considered marital property will be divided during your divorce. You should identify all shared property and note how your property is used for your employment. You should also consider how important it is for you to keep ownership of any shared property and if you are willing to buy-out your spouse to maintain ownership (if it comes to that).
Self-employed individuals face unique challenges every day. It is no different when it comes to divorce. Going over these questions with your divorce attorney will give you a clearer understanding of how your divorce will affect your employment and help you develop a plan to protect your life after divorce.