Going through a divorce is difficult enough without having to worry about the division of your medical practice. If you and your spouse own a medical practice, it can be especially complicated to figure out how to split things up so that everyone is fairly compensated and able to continue practicing medicine. To make things easier, you can do the following.
Letting one spouse buy out the other
If you and your spouse both own the medical practice, one way to divide things up is to have one spouse buy out the other. This can be a relatively simple process, especially if the medical practice is valued at a reasonable price. The buying spouse will then become the sole owner of the business. To achieve this, the buying spouse will need to come up with the money to purchase the other spouse’s share of the business, which they can do through a number of different methods, such as taking out a loan or selling assets.
Selling the medical practice
Another option is to simply sell the medical practice and split the proceeds between you and your spouse. This can be a good option if you’re not interested in continuing to run the business or if neither of you wants to buy out the other. You’ll need to find a buyer for the business before concluding the divorce, which may take some time and effort, but when you do, the sale can provide a lump sum of money that you can use to split between you and your spouse.
Continuing to run the medical practice together
If you and your spouse are still interested in running the medical practice together, you can do so by creating a partnership or LLC. This will allow both of you to maintain an ownership stake in the business and continue to work together. However, it’s important to note that this option can be risky if things go sour between you and your spouse, as it can be difficult to dissolve a partnership or LLC.
No matter which option you choose, it’s important to understand the value of the medical practice before you begin the division process. You can do this by ordering a business valuation, which can give you an accurate estimate of the worth of your business. Once you have this number, you and your spouse can begin to negotiate a fair division of your medical practice.