Filing for divorce means each spouse must go through their finances with a fine-tooth comb. In the case of a physician, this medical professional must find the value of their medical practice. A medical practice may be a sole proprietorship. In other cases, it may be owned by a group. Therefore, it is important to find out the value and the potential impact a divorce will have on the business and business partners.
What is the entity of the medical practice?
The limited liability company, or LLC, business structure has become popular for many business owners. One of its main features is that it protects the members’ assets in case of a lawsuit or divorce. The current entity of the practice will be examined during a divorce. It can determine if the practice’s assets can be used during the proceedings.
When was the medical practice established?
A physician as well as other individuals who bring into a marriage sizable assets must establish when those assets were earned. In the physician’s case, it matters when the medical practice was established. Whether it was before or during the marriage makes a difference.
How was the medical practice funded?
The funding of the medical practice is important, too. If marital assets were used to fund the practice, then the current spouse could make a claim to its value. If marital assets were not co-mingled, then the current spouse may not be able to claim some ownership.
Is there a buy-sell agreement?
A buy/sell agreement is a succession planning agreement that determines the exit strategy of its important executives. It addresses divorce so that the business can continue to live thereafter. If one exists, the physician needs to take a look at the parameters before the divorce proceedings take place.
A physician is in a unique spot when the potential for divorce becomes a possibility in Edgewood, Kentucky. So, a physician is encouraged to seek the legal help of a professional who understands family law as well as how it impacts a physician and his medical practice.