Doctors in Florida who are going through a divorce face unique challenges. Having a practice can complicate things when going through property and asset division. It’s important to know what can happen.
Is the medical practice considered marital property?
When a doctor is getting a divorce, they might worry that their practice may be considered marital property. If it is, their spouse may get a percentage of the assets from it as part of the settlement. However, there are factors that determine if this is the case. If the practice was started after the marriage, it’s considered marital property. If the practice was founded before the marriage, it would not be considered marital property.
The doctor is also entitled to retain ownership of the practice. Unless the spouse is also a doctor and has an interest in the practice, there wouldn’t be any reason to share it with them. If there was a prenuptial agreement in place prior to the marriage, the doctor wouldn’t have to worry about this issue.
Will the practice have to be sold?
During a divorce involving a physician, it’s the value of the medical practice that’s a focus for asset and property division. As a result, the practice does not have to be sold and the spouse cannot take a share of it unless they are also a doctor. However, it’s possible that as part of the divorce settlement, the doctor will have to pay a portion of the value of the medical practice to their former spouse.
In the latter scenario, an accountant might be asked to help in determining the value of the medical practice. Even if both spouses are doctors who both work in the practice, one can be bought out with a portion of the assets from the value of the practice.