How can a bookkeeper help you in divorce?

On Behalf of | Oct 7, 2022 | Blog, Family Law |

If you are a business owner going through a divorce, you probably face the challenge of making it through the divorce without losing your company. In the event your spouse has a claim to some of the value of your business, you might end up selling your enterprise to give your spouse his or her share. Having a bookkeeper assist you may prevent this outcome.

According to Chron, a bookkeeper can provide a number of essential services as you settle the end of your marriage. You may show that your spouse does not have much or any claim to the value of your company.

Track your accounts

Putting your personal money into your business account and vice versa could cause a judge to rule that your business funds count as marital property. If you have not been commingling your business and personal accounts, you should be ready to prove it. Your bookkeeper may produce records that clearly show how you have moved your money into various accounts.

Establish you have paid your spouse

You should also be careful if your spouse has contributed any labor to your business, which could result in sweat equity. Some divorce judges find that a spouse should receive compensation as a result of putting work into a spouse’s business. If you have already paid your spouse, your bookkeeper might help you prove that you have made the transaction.

Explain your situation to the court

Not all business owners are financial experts. You do not want to make a mistake describing your accounts in court. Fortunately, a qualified bookkeeper may step in and explain your business finances to the court in your place.

You will likely need other professionals to assist you, such as a professional appraiser to assign a value to your business. Consider all the people you should hire to help you retain your business once the divorce is over.

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