Perhaps the only thing more stressful than practicing medicine is practicing medicine while going through a divorce. If you have your own medical practice and your spouse are splitting up, one of the most important factors to tackle is what will happen to the practice.
You must use careful planning and strategizing to preserve the financial health of your business while navigating your divorce. Here, we will go over some of the most important factors that you should consider.
What to consider when dividing a practice
Just as the operation of medical practice is incredibly complex, so is its division in a divorce. These are some of the critical factors that you must address:
- Valuing the practice: Your first major step is to determine the value of your practice. There are several methods for valuation, including market-rate valuation and asset-based valuation.
- Dividing the practice: There are also several options for distributing the practice. You may sell it, and each take a portion of the proceeds. One of you may wish to buy out the other’s share. There are many more options, and you should determine which one best suits your finances, lifestyle and career.
- The location of your office: If you move out of the marital home, you may wish to relocate your practice closer to your new place.
- Private agreement or trial: Sometimes, spouses can reach a private arrangement regarding the division of a practice. However, some cases will proceed to trial. If your case goes to court, a judge will decide the outcome.
Every divorce is unique, as is every doctor’s career. No one can determine what is best for your practice except for you. It is up to you and your attorney to advocate for your best interests and protect your medical practice.