Houston couples who are facing a divorce can begin to shift their energies from a joint to a singular focus. This means that they tend to begin making decisions for their own good, not necessarily for the good of the marriage or family. This can happen in a variety of arenas, including regarding financial decisions. Once a divorce is underway, it clearly happens regarding child support, spousal support and more.
Women on the brink of divorce that have business-owning husbands should be aware of some common tactics that men can employ to essentially hide assets in an effort to reduce their eventual divorce settlement payout. A recent article discusses what the writer refers to as “Sudden Income Deficit Syndrome” and details some of the crafty ways that a business can be used to shield assets during a divorce.
Wives are encouraged to take note of key activities including a husband’s reluctance to provide requested financial data and a reported decline in business income while the standard of living either remains the same or even improves. Reviewing records can sometimes reveal a decline in business earnings that coincides with the end of a marriage. Personal expenses being paid by a business is another way to reduce the profit of a business as well as the income of the husband directly.
While certainly it is true that not every husband tries to cheat his way out of a divorce settlement, it can and does happen. Women who are going through a divorce may be wise to consult with an attorney to make sure they can be properly protected through the process.
Source: Forbes, “If Your Husband Owns A Business, Watch Out For SIDS (Sudden Income Deficit Syndrome) Once Divorce Proceedings Start,” Jeff Landers, October 10, 2013