Doctors going through divorces in Florida should pay careful attention to their medical practice valuations. It’s worth enlisting the support of a family law attorney with forensic accounting experience.
Questions to consider when valuing a medical practice for a divorce
Financial separation is a significant part of most divorces. Plus, settlement agreements are usually based on income and asset calculations. So doctors in private practice who are divorcing may want to consider specific questions like:
• When was the practice established? Was it before or after the marriage?
• How was the practice funded throughout the years? Did you raise startup capital? Did your estranged spouse participate?
• Was stock or a similar type of security issued to investors at any point in the practice’s history?
• Is there any vesting of ownership shares or stocks that your soon-to-be-ex could claim after the divorce is final?
• Is there an active buy-sell agreement?
What physical items should be included in a practice valuation?
Your medical practice isn’t just about patient income. Office products and machinery should also be included in the calculations, including:
• Filing cabinets
• Office supplies
• Copy machines
• Medical machinery
“Goodwill” can even be commodified for a divorce decree.
Don’t forget about the liabilities that could devalue a practice, like insurance costs, taxes, retirement plan contributions and loans.
Divorce-related finances can be complicated, and if an estranged spouse believes you’re misrepresenting financials, you could be slapped with a fraud charge. Crossing every monetary “T” and dotting every investment “I” is the best way to a fair divorce settlement that benefits you.