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How Do I Know How Much My Private Practice is Worth in a Divorce?

Posted on in Complex Divorce

Austin complex divorce lawyerDivorce can have a significant financial impact on a person, especially if they are involved in running their own business. A business is usually among the marital assets that need to be divided under Texas community property laws. But before a business can be divided, its value needs to be assessed.  Some businesses are easier to value, while others, such as private practices, can be more difficult. If you are a physician with your own practice, you likely have questions about how your business will be valued for the purposes of divorce. 

Determining the Value of a Medical Practice

In order to determine the actual value of your medical practice, you will need to hire a financial professional who specializes in medical practice valuation. It is critical that you hire your own professional to make an assessment of your practice since it is also highly likely that your spouse’s attorney will also recommend they hire a professional to do the same.

There are several factors that the court will consider when determining how much a medical practice should be valued and how much – if any – of that value is part of the marital estate. These factors include the business structure you chose when you originally opened your practice and how long the practice has been open. Valuation becomes even more complex if you are in practice with other physicians as well as whether any other owners hold stock in the practice.

Other factors that go into valuing a medical practice are the accounts receivable, medical equipment, office equipment, and any real estate the business owns. And it is not just assets with a tangible dollar amount that are included in a practice valuation. The goodwill and reputation your practice has built with the community can also be considered.

It is important to also account for factors that can decrease the value of the business, such as accounts payables, loans, malpractice insurance, and any other debts the practice owes. 

Contact a Travis County High Asset Divorce Lawyer Today

If you are a physician with your own practice and are considering or have decided to file for a divorce, contact Powers and Kerr, PLLC to find out how we can help. We will work diligently to ensure that your medical practice is protected. Call 512-610-6199 to schedule a confidential consultation with one of our dedicated Austin, TX complex divorce attorneys.

Source:

https://www.medicaleconomics.com/view/medical-practice-valuation-how-determine-financial-value-your-practice

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