Divorcing when there is a large amount of wealth and assets involved can get complicated. For New Jersey couples who own medical practices, understanding how the assets and ownership of the practice are divided in divorce is a critically important matter because the future of the practice and the outcome of the divorce depend on handling it correctly.
Issues to review
The accounting for the value of a practice, or a share in a group practice, is complex. The exact timing of the formation of the practice, when it grew, how its legal structure may have changed over the marriage, the value of equipment and when that equipment was acquired, the practice’s brand value, the contribution of the physician going through the divorce and other matters all need to be evaluated. The court must decide how valuable each component of the practice is and whether it is marital property.
Value of stock in the practice
The practice itself may have rules and procedures for members going through a divorce, like removing the stock of any partner who is negotiating a settlement. Additionally, the court may need to determine if the spouse is allowed to own any of that stock or whether its value must be offset with other financial assets. Even basic questions like the value of the practice’s shares can be up for debate in court.
The process of divorcing with a medical practice involved can be expensive and messy, but it is essential to sort out the value and disposition of the practice. It is likely to be the most valuable asset at stake and will have an impact on the entire settlement.