What are the Unique Challenges of Divorcing as a Medical Professional in California?

The division of marital assets is a complex aspect of virtually every divorce. If you are a medical professional, however, you face unique challenges that have to do with your practice, which should be considered carefully from the outset. With over 350 years of combined experience, having the skilled legal guidance of 20 Orange County divorce attorneys in your corner can make a significant difference in your divorce terms and how well your practice is protected.

Property Division in the State of California

In California, the assets you and your spouse come to own while you’re married are considered community property, and upon divorce, these assets – or their overall value – must be divided between you equally. Separate assets are those that either of you owned before marriage and kept separate during the marriage.

If you own a private medical practice, it’s likely your most – or one of your most – valuable assets, and continuing to foster its growth is critical. If you began the practice during your marriage, your spouse is entitled to their fair share of its value. Your practice is your separate property if you began the business before marriage.

Your earnings from your practice throughout your marriage are marital – the same way your spouse’s earnings are if they also worked during your marriage. Additionally, the community may have a right to reimbursement, but not ownership, to any increase in your practice’s value during your marriage. If you share your private practice with partners, you can expect the divisions of your assets n to be even more difficult.

If You Don’t Have a Private Practice

If you don’t have a private practice but, instead, work for a hospital or medical facility, you won’t face the complications that come with business ownership, but protecting your financial rights in the pending divorce will play an important role in your financial future. The greater the differential between your income and your divorcing spouse’s, the more likely you are to pay both child support and alimony, and calculating your income accurately – is key.

How Your Practice Is Likely to Be Addressed

It’s important to note that physicians don’t lose their practices in divorce. That said, the value of your practice will need to be addressed.

The kind of considerations that will play a role in how your practice is addressed in divorce include the following:

• The value of the building and property – if you own it
• The value of your practice overall, including tangible and intangible assets
• The goodwill your practice has garnered
• The profitability of the practice

Putting a Price on Your Practice

If you’re a medical professional facing a divorce, a major concern is the value of your practice, and you and your divorcing spouse may have very different views on the matter. Ultimately, obtaining a definitive valuation is generally required, and the most efficient means of doing so is coming to an agreement with your soon-to-be ex regarding the firm you’ll hire to do the valuation.

A Note about Goodwill

As a medical professional, goodwill in your practice is a reflection of the services, guidance, and care you provide – as well as the reputation you’ve earned. If you are working at or near capacity, the goodwill you’ve generated can greatly increase your practice’s value.

Don’t Wait to Reach Out to an Experienced Orange County Divorce Attorney

The 20dedicated divorce attorneys at Minyard Morris – proudly serving Orange County, California – appreciate the unique legal complications associated with running a medical practice, and we are ready to implement the full force of our experience in this arena to help protect the practice you’ve worked so hard to build. We are on your side, so please don’t hesitate to contact us or call us at 949-724-1111 for more information today.