In many cases, a man’s work life and home life are kept separate. Not so with a male physician, especially during a physician divorce. Your job may affect many aspects of your personal life, from your marital finances to your parenting schedule. Since many doctors are also business owners with their own medical practices, you’ll be forced to consider your practice an asset during negotiations.
Valuing your medical practice during divorce can be a headache to deal with if you don’t work with an experienced divorce lawyer for physicians. Luckily, the right attorney can help you maintain your medical practice independently after divorce.
Obtaining An Accurate Valuation
Before you agree to any divorce settlement, your first priority should be to take stock of the value of your assets, including your practice. You’ll need an accurate valuation of your practice to ensure you don’t suffer unnecessary financial burden, so work with a lawyer who can connect you to an appraiser. Your family law attorney who is experienced in physician divorce may also retain a financial neutral and other experts who will accurately evaluate the practice’s finances and ensure you get a fair shake in your divorce.
First, you must determine the appropriate date for valuing your practice. The states differ in their definition of the valuation date. For example, New Jersey requires the use of the date of complaint, while Minnesota suggests using the date of the divorce. Speak with your divorce attorney for physicians to learn about the guidelines in your state.
Once your appraiser has determined the correct valuation date, there are several criteria he may use to arrive at an appropriate valuation. In some cases, the value of the practice if it were to be sold as-is with the profits distributed between the spouses may be much higher or lower than if one spouse maintained ownership and was responsible for the practice’s expenses and growth. We know it pays to work with an experienced appraiser, so we’ve developed relationships with top-notch professionals over the decades. This is a huge benefit to our clients, who don’t want to worry about whether the appraisal they receive is accurate.
How to Use the Practice Valuation During Negotiations
It pays to understand how your practice’s value may be different in each scenario. If your wife claims your practice will be worth a bundle of money in ten years after you’ve put in countless hours of hard work, you’ll be prepared to counter her claims with a much more realistic valuation based on its present-day value.
In some jurisdictions, a non-physician cannot own a medical practice or employ a physician. Therefore, if your spouse is not a physician, he or she cannot take over a share of the medical practice as part of a divorce settlement. Instead, you and your spouse have to arrive at a financial settlement based on the practice’s value. Knowing your spouse cannot own the practice means you’ll both have to consider how much you could get for it in the current market and whether it’s worth sacrificing other assets to keep the practice.
The division of marital assets and debts can be one of the most confusing aspects of a divorce settlement, even without a medical practice to consider. Luckily, the men’s divorce lawyers for doctors at The Micklin Law Group are here to help you protect your rights during divorce. We will work tirelessly to help you walk away from this difficult time in your life with a favorable settlement.
If you’re a doctor who needs assistance determining the value of your medical practice during your divorce, contact The Micklin Law Group for assistance.