If you are a physician in a private medical practice, you are likely concerned about how your divorce will affect your practice and your income. Working with a divorce financial professional can help you understand the process and allay some of your fears.
Medical doctors, especially sole practitioners, reasonably raise the issue that, “Without me, there is no value to the company.” They believe there will be a very high value attributed to the medical practice. This concerns them in that they fear how they will be able to compensate their soon-to-be ex-spouse.
In addition, the professional worries about how, if they do compensate their spouse for the value of the practice, then the medical professional will be further drained financially by still having to pay child support.
The physician may also be concerned that a non-medical professional spouse may not have the education, background, or skill to earn enough money to support themselves. So that the physician will also have to pay spousal support.
Working with a financial professional during the valuation process is helpful. The doctor can explain to the financial professional the background of the business. The financial professional will go through all financial information. Divorcing doctors need to understand that they are better off divulging all the expenses, even some they may think are only quasi-business related. It is much better to have an open dialogue than to hold anything back.
Heberger & Company Can Help with Valuation of a Medical Practice
Proper valuation of a medical practice can take time. Contact us at Heberger & Company An Accountancy Corporation to schedule a free initial consultation to see how we can help.
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Pre-Divorce Financial Checklist
It seems that in almost all cases of divorce, one party has been the one who handled the money and can readily provide necessary financial documents to legal counsel handling the divorce. The other party is often left in the dark and should sit down with the CPA who prepared the tax returns and go over the documents in order to discover the true financial situation. Here are some of the items that … [Read More...]
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