Divorce has only gotten more complicated, and it doesn’t seem to be getting any easier. Add owning a West Virginia business to a contentious divorce and there may be serious ramifications to your professional life.
Divorce rates dipped and then spiked
Although divorce rates went down in 2020, this was only stalling the inevitable. In many cases, it led to a pressure-cooker situation that has only made matters worse harder to deal with when the split finally came.
Fortunately for those dealing with this kind of situation in West Virginia, their state isn’t a community property state. This means your marital property isn’t automatically divided in half between you and your ex-spouse.
Don’t overlook forensic accounting
Many think of forensic accounting as something that’s mainly useful for the divorcing spouse who didn’t own the business. With a forensic accountant, they’re able to track down every hidden cent in the business that they’re entitled to.
But the business-owning spouse may also benefit from this type of analysis. They can use forensic accounting to ensure the process is fair while also making all the necessary preparations to help things go smoothly. But both spouses may benefit from conducting some forensic accounting to double-check that the distribution of assets is fair.
It’s not necessarily what you or your spouse want to be thinking about, but excellent financial hygiene involves considering exit strategies out of any situation. If you own a business with your spouse, a post-marital agreement may be advisable.
An increasingly large number of divorces happen later in life. While it may not not be the most romantic thing, you should be prepared to talk with your partner if you want to protect the future of your business. It’s crucial that you form a business structure that’s smart and the right fit for you so that if it does come to divorce, you’re ready for it.