Experiencing a divorce can be an emotionally draining process, which can take a toll on your personal and professional life in Massachusetts. Things can be worse if you and your partner own a medical practice together, as you will have to settle many legal and financial aspects before you can move on with your life. Where do you start?
Understand the value of your practice
Determining what the worth of your medical practice is for purposes of divorce is important because you and your partner will need to divide the assets fairly. You should hire a valuation expert to help you determine the value, as it can be more complex than just looking at the profits and losses from past years.
Let one partner buy out the other
If the practice is worth more to one partner than the other, it may be in your best interest to let that partner buy you out. This can be a difficult process, but it may be the most financially responsible option for both parties. You will need to come up with a fair price and have an agreement in place regarding what will happen to the practice if one of you dies or retires.
Sell the medical practice to a third party
If you and your partner are unable to agree, you may have to sell the medical practice to a third party. This can be a difficult process, as it will require finding a buyer who is interested in purchasing a medical practice and who is also willing to work with two former owners. You will need to come up with a fair price and have an agreement in place regarding what will happen to the practice if one of you dies or retires.
No matter what path you choose, it is important to remember that having a divorce does not mean the end of your medical practice. With careful planning and execution, you can ensure a smooth transition for you and your patients. Just remember that a medical practice can be a valuable asset during a divorce, so make sure you understand the implications of parting ways before making any decisions.