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The added complexity of divorce for physicians

On Behalf of | Aug 25, 2020 | Divorce |

Every divorce comes with its own unique set of circumstances. When a physician in Texas becomes involved with the divorce process, the valuation of his or her medical practice often becomes the top priority.

Most physicians are members of a group practice or partnership. The family law attorney on both sides of the table will obtain as much information about this practice as possible to come up with an accurate valuation. Common questions that need answering include when was the practice established, What type of funding did the medical practice receive, and is their a buy and sell agreement that exits between members of the practice.

A forensic accountant or other person experienced with the valuation process will take all the available information into account before coming up with a value for the business. Other factors considered by the person or firm completing the valuation include property assets, office equipment, accounts receivable, and financial obligations.

It is unlikely that a non-physician will receive legal permission to become the owner of the medical practice. This fact makes it necessary for the non-physician spouse to agree to a settlement that is reflective of the practice’s value or trust the court to determine a solution.

Often, the valuation of the medical practice for divorce purposes is decided by which of the experts presenting evidence for one side or the other in a divorce proves more credible to the court. An experienced lawyer will never accept the words of the other team’s expert at face value. The attorney will refute the information with an expert of his or her own or elicit testimony that will discredit the expert.

The value of a medical practice is important to both parties to a divorce when a physician is involved. A clinic or other medical practice is a large asset that adds complexity to property divisions due to the regulations attached to medical practice ownership. Physicians who are either considering a divorce or already involved in the divorce process may find help at protecting their assets by speaking to a divorce attorney.