Cash-Based Businesses And Divorce
If you or your spouse run a cash-based business, or if the two of you own and manage one together, you need to keep accurate records. This is important in order to maintain the records that are required by the Internal Revenue Service (IRS). Additionally, an accurate picture of the income provided by a cash-based business will be required to equitably distribute resources should a marriage end, including providing the necessary documentation for alimony and child support payment awards.
To determine how to best share information about your cash-based business, connect with a Bucks County family attorney. There have been situations in which one spouse claims a business income is one amount and the other individual assets the number is actually much higher or lower.
Proof of Income Provided by Business
Taxes, when they are accurately reported, will provide strong evidence of the worth of a business. That said, there are times when tax records are not filed in a timely fashion or accurate records are not in place to back up the numbers supplied to the IRS. Then, there needs to be a review of all receipts, bank transactions, and financial statements.
When a spouse is seeking maintenance payment or other financial recourse, the court reviews the person’s monetary needs, their income level, and how able they are to work in the future. A similar analyzing process occurs when child support is assessed. The number of children along with their standard of living and needs will be reviewed along with the financial records of their children’s parents.
Dividing the Assets of a Cash-Only Organization
Evaluating the assets of a business is part of the divorce process, particularly in states that follow equitable distribution guidelines, including New Jersey and Pennsylvania. To land on an accurate assessment, an analyzing process will take place, one that looks into all of the liabilities of a cash-only business, from debt responsibilities to rent agreements, as well as the assets held such as property owned outright and expensive equipment and inventory.
The process is often more complicated when the business runs solely on cash, but there are ways to secure all the documents you need. A Bucks County family attorney who has a background in cash-based business divorces can help. And they have contacts with financial professionals if more expertise is required.
Equitable division of assets is a critical part of a successful divorce. You need to be sure your financial security is in place now and into the future.
Are you worried you will not receive an equitable division of resources because you and your spouse own a cash-based business? Getting the experienced help you need is key, connect with the compassionate legal team at Kardos, Rickles & Hand. Divorces involving cash-based businesses can be complicated, but you may have more options for asset acquisition than you originally thought. Once our attorneys understand your objectives, we will advise you on the correct steps to move toward your goals. To begin your successful lawyer-client relationship, call 215-968-6602.