Texas medical practitioners who are going through a divorce have a lot more to think about than the average couple. In addition to figuring out how personal assets like the house, savings accounts and retirement accounts will be split, practitioners must worry about what will happen to their medical practice.
Medical practices are definitely considered an asset that can be dragged into divorce proceedings. In addition to the practice determining your income, your soon-to-be ex-spouse can demand profits from the medical practice or even the sale of the practice depending on a variety of factors.
Will you have to split ownership of the practice?
There are several things that can impact what happens to a medical practice in divorce. Things that can impact the decision include the value of the medical practice and the practitioner’s behavior leading up to the divorce.
In a no-fault divorce, the court might attempt to split marital property 50/50. If your spouse has no ownership over the medical practice, it may be hard for them to argue that they deserve profits from the medical practice or ownership in any way. However, if your spouse was a stay-at-home partner who took care of the household, they could make an argument that their contribution made it easier for you to start or maintain the medical practice.
What if your spouse’s name is on the paperwork?
If at any time your spouse co-signed a loan, invested in your practice or otherwise helped it succeed, the court could determine that the practice is a marital property. In this case, the court will work with both couples to determine a fair outcome that compensates each party.
There are a lot of other things that could skew compensation in one party’s favor, such as adultery, lack of child involvement or financial distress. Texas courts will view the history of the marriage and the medical practice to determine who gets what.
Every divorce is different. It’s important to be patient as you negotiate to get the best possible outcome for your practice.