Divorce proceedings don’t exactly bring out the best in people. Instead, these proceedings can make people do things they might not usually do. If your spouse owns a business, you need to be on the lookout for a sudden financial shift in the business.
Sudden income deficit syndrome (SIDS) is a form of SIDS that you might not have heard about before. In this case, SIDS means that all of a sudden, the income of your spouse’s business starts to decrease just around the time of the divorce. This is done for several reasons, including trying to get the other spouse to accept a low-ball property division settlement.
Making it seem like the business doesn’t have a high income can make it seem like a turnip that you can’t get blood from. This might lead the non-involved spouse questioning what happened all of a sudden to make the business go downhill fast.
There are several things that you can look into if you think that your ex’s business has SIDS. Checking the sales receipts and financial documents give you a clue. Looking at the lifestyle of your ex can also provide clues. If your ex is living the high life while claiming that the business is faltering is a sign that something is amiss.
Protecting yourself is one of the most important things that you can do while you are getting a divorce. Remember that you shouldn’t take your ex’s word for everything. Instead, demand proof and be ready to provide proof of your own. This helps to ensure that you walk away with a settlement that you can live with.
Source: Forbes, “If Your Husband Owns A Business, Watch Out For SIDS (Sudden Income Deficit Syndrome) Once Divorce Proceedings Start,” Jeff Landers, accessed March 09, 2017