Doctors and other high-earning professional workers in Pennsylvania may understandably be concerned about what will happen to their practices — perhaps their most valuable assets — during the process of getting divorced. For many of them, they have put large amounts of money, time and energy into their businesses. A few tips may help them to approach property division wisely during their divorce proceedings.
Multiple factors are important to consider when embarking on a divorce process involving a high-value asset such as a medical building. For instance, whether a buy-sell agreement exists, when the practice was created and whether participants received stock in the business are important considerations. In addition, how this practice was funded has an impact on the outcome of the property division process.
A forensic accountant can be invaluable for determining the share that an individual doctor has in a health care practice. The accountant will look at the doctor’s business assets, such as office equipment, financial assets and even accounts receivable. Liabilities are also important to factor in, such as loans and owed taxes.
Although divorce can be financially complicated for high earners, an applied understanding of the law may help with making prudent decisions when tackling property division. Knowing one’s rights is critical to avoid being taken advantage of at the negotiation table, during the divorce mediation process or at the divorce trial, for example. An attorney in Pennsylvania will help one to pursue the most personally favorable outcome given the circumstances surrounding the marital split-up.
Source: mdmag.com, “Most Critical Financial Step in Physician Divorce: Evaluating the Practice“, Douglas R. York, Nov. 15, 2017