For highly paid professionals in Texas who own their own businesses, such as doctors, who are going through the dissolution of a marriage, the most important matter to consider is their practices’ value. Many doctors in particular belong to group practices or partnerships today. A few tips may help them to protect their best interests when dealing with property division during divorce.
Several factors are important to consider when dealing with a high-value asset such as a medical practice. For instance, how the practice was funded, whether it was established during or before the owner’s marriage, and whether stock was issued to participants are all essential questions to ask. The answers to these questions affect the practice’s value.
A forensic accountant can be used to examine both financial and tangible assets, office equipment, accounts receivable and furniture. The accountant will also take into consideration various liabilities, such as loans, retirement plan contributions, taxes due and insurance costs. Then, the value of the practice can be determined.
Once they know the practice’s value, the physician and his or her soon-to-be ex can work together at the negotiation table to arrive at a just financial settlement. This is the most ideal situation for dealing with this type of high-value asset in Texas, as the parties can feel in control of the divorce process. However, sometimes negotiation does not work, as the spouses cannot see eye to eye on how to split the asset, so the court will have to get involved and make a final decision on the matter.
Source: mdmag.com, “Most Critical Financial Step in Physician Divorce: Evaluating the Practice“, Douglas R. York, Nov. 15, 2017
