Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
You are not in trouble at all. In fact, this helps you. The business account will show a loss, which should be subtracted from you other income. You can file a Schedule C for the business (if it was a sole proprietorship) and report the loss there too. You should. Then you can give them your tax return, showing a Schedule C loss. I am glad they subpoenaed your business records. Make sure sure you subtract the Schedule C loss from you other income on your divorce financial statement.
Thank you for using JustAnswer! Please click "Accept". If you need more, please let me know.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).