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Tips for allocating a medical practice in a divorce

On Behalf of | Sep 30, 2020 | Divorce |

If you are a physician, the value of your practice will become a key fact when it comes time to negotiate a divorce settlement in Louisiana. Many variables will need to be considered as it relates to calculating the current and future value of your practice. For instance, it will be important to consider whether the practice was started before or after you got married to your spouse.

Why the founding date of the practice is important

Generally speaking, both parties in a marriage are entitled to a portion of any asset that was acquired after the wedding took place. If an asset appreciated during a marriage, an individual may be entitled to a portion of that profit. If a stock or other option will vest after a divorce takes place, a spouse might be entitled to a percentage of the stock or option’s value.

However, this may only be true if it was acquired while you were together with your husband or wife. Your accountant may be able to determine whether an asset should be classified as a joint or separate asset or a combination of the two.

It may not be possible to sell shares to a spouse

In most states, individuals who don’t have medical licenses cannot own some or all of a medical practice. Furthermore, they are not allowed to employ medical professionals if they don’t have sufficient credentials of their own. Therefore, if your spouse isn’t a physician, you may need to make cash payments to him or her instead of simply working with your ex after the divorce is completed.

If you are going through a divorce, it is important that you understand how to obtain everything that you may be entitled to in a final settlement. A family law attorney may help an individual acquire a reasonable share of joint assets as well as a portion of any future income that may be generated.