Divorce can affect many things in your life, including where you live and how often you see your children. As a medical professional in Minnesota, your medical practice could also be at stake.
When the practice started
One factor determining whether or not your practice is at stake in a divorce is when this business started. It’s more beneficial if you start your practice before getting married. But that’s not always the case. If you started your medical practice while married, it’s likely going to be at stake in a divorce.
Your former spouse’s line of work
Something beneficial to remember is unless you married another physician, this person can’t take over your business. If your former spouse isn’t a doctor in what you specialize in, there’s no danger of them taking your place at your medical practice.
The value of your practice
If your medical practice is at stake, the likely next steps will involve each party’s expert evaluating your practice’s worth. Sometimes, each side’s expert provides similar valuations. In other cases, someone’s expert might provide a valuation that’s either too low or high. One financial expert might try to discount the other professional evaluator and vice-versa.
During the process of evaluating your medical practice, specific challenges can arise. Experts typically need to account for the value of intangible goods, debts, and any contracts this practice has in place. A practice’s value can also change if you’re involved in a lengthy divorce process.
Current business partnerships
Divorces aren’t only challenging for medical professionals and stressful for your practice’s partners. If significant post-divorce practice changes occur, your partners might make other business arrangements. That’s why having a buy-sell agreement in your business contract is beneficial. This agreement protects someone when their business partners face challenges, including divorce or bankruptcy.
The future of your medical practice depends on several critical factors in a divorce. If your practice is at stake, have a professional evaluate other assets. Sharing other assets can prevent an ex-spouse from trying to seek compensation from your practice.