Most modern physicians have two main career options. They can either seek employment with a corporate entity or strike out on their own to establish a private medical practice. Physicians, chiropractors and other health care professionals may prefer the independence that comes from establishing a private practice.
They can choose what patients they treat and what standard of care they employ. They can set their own hours and choose their own pay rates. Of course, the trade-off is that they often have to do far more work related to business management than those who work as employees. The practice that they develop may eventually become their most valuable asset.
If a physician or other medical professional with a private practice faces divorce, their practice could be a major complicating factor. They may want to protect the practice from division under Washington’s community property statute.
How can medical professionals protect their business when they are divorcing?
With a marital agreement
People intending to invest heavily in their careers may have entered their marriage with a prenuptial agreement already in place. They might assume sole responsibility for their student loans while simultaneously designating their practice as separate property if they later divorce.
Other times, professionals might negotiate postnuptial agreements with their spouses because they start a medical practice or the marriage goes through a significant downturn. Marital agreements can guide property division and help medical professionals protect a practice as separate property.
With careful negotiations
Protecting a medical practice could be very difficult if people leave everything up to a judge. Therefore, medical professionals facing divorce may want to try settling with their spouses. They might have their lawyers negotiate extensively or may even sit down to attempt alternative dispute resolution to resolve disagreements about asset distribution, financial support and other issues.
A successful professional who runs a practice generally needs to understand its fair market value. They may need assistance conducting a business valuation. They may also need to evaluate the marital estate carefully so that they can propose a settlement that is reasonable.
Medical professionals hoping to retain sole ownership of a medical practice may have to give up their interest in other property or take responsibility for more marital debts to make the settlement reasonable. Certain factors, including a spouse’s employment at the medical practice or direct investment in the business, can complicate divorce negotiations.
Professionals intending to preserve specific resources often benefit from cooperating with their spouses instead of litigating. Reviewing marital circumstances and business records with a skilled legal team can help medical professionals protect the practices they have developed as they prepare for high-asset divorces.