When the marriage of a British Columbia couple ends, it will naturally be a stressful time for both spouses. However, when a self-employed person goes through a divorce, there are typically additional issues to consider in order to limit any damage to the business. The first step would be to review all bank accounts, assets and debts along with insurance policies and other important financial documents.
For the purposes of disclosure in the divorce, all these details will be required for the completion of various forms. Along with the balances on all accounts, questions about the particulars of the business structure and whose names are on the different accounts may be asked. Joint accounts will have to be closed, and assets such as car loans or mortgages might have to be sold or refinanced in the name of one of the spouses. If the names of both spouses are listed on business accounts, steps must be taken to protect the business.
Once that is all addressed, each spouse can take action to open new separate accounts and check individual credit reports to resolve any errors before moving on. Each spouse has the right to fight for everything he or she needs — making those changes after the divorce is finalised may be difficult, or even impossible. It is natural to want the divorce over and finished, but rushing it may bring regret.
Navigating a divorce in British Columbia is best done with the guidance of an experienced family law lawyer. Those who are self employed and confronting divorce proceedings will want to discuss their situation with a divorce lawyer. The attorney can suggest the most appropriate way to proceed while making sure the client’s rights are protected throughout the legal proceedings.
Source: carefulcents.com, “Getting a Divorce When You’re Self-Employed: 5 Financial Steps to Take“, Carrie Smith Nicholson, Accessed on March 3, 2017