West Virginia divorces that involve medical practices as a marital asset will involve challenging the financial representation of the other party, so there is an inherent level of confrontation in the experience. But that’s no reason to back down from your entitled share of financial assets from the business you took part in creating.
Where to start?
Among the first things both you and your ex will likely do in the divorce process is look into how financially valuable your medical practice is as an asset. It’s more common than ever for doctors to be a part of a group practice or partnership, which may muddy the financial waters and make things a bit more legally complicated for your divorce.
Some of the main elements of your medical practice for the divorce proceedings are:
- The entity type
- When the practice was established
- The funding of the practice
- Whether shares were issued to participants
- If there is a buy-sell agreement
The timing of the establishment of your practice is key. It makes a considerable difference from a legal perspective whether you established your practice before getting married or at some point in your marriage.
By considering these components of your practice, you can gauge the financial value of your medical practice. This will in turn better prepare you to handle your divorce to get the best outcome – and to handle that outcome, whatever it may be.
One of the most mysterious assets of all is called goodwill, and it can be the most challenging to quantify. It’s intangible and comes into play when one company purchases another. If your medical practice ever purchased another business or vice-versa, you may have to deal with this often troublesome asset type.
Watch out for fraud
If you intentionally misrepresent the value of your medical practice, there’s a possibility that this will be seen as fraud. Some people do this as a way of avoiding paying their ex-partner their fair share.
In some cases, you’ll have to let your professional partners know that you’re getting divorced. This is a requirement because although it’s specifically your divorce, it’s a legal issue that everyone involved in the practice might have to deal with at some point.