Divorce is often a difficult process, but it can be especially challenging for couples who own a medical practice together. Not only can dividing a business complicate the financial and legal aspects of divorce, but it can also lead to disagreements between the two parties. Thankfully, there are things you can do to make the transition easier.
Discuss your goals
The first step to a successful divorce is setting expectations. By discussing each party’s goals, both parties can work towards an equitable and fair settlement. For instance, if one party wants to keep the practice and the other wants to cash out their share, you can discuss this beforehand to ensure that both parties walk away satisfied.
Hire a mediator
Mediators are impartial third parties that help facilitate negotiations between two parties in dispute. By hiring a mediator, doctors can get help with negotiations and avoid having to go to court. During a typical mediation session, the mediator will help both parties identify issues and work towards a resolution that everyone is comfortable with.
Divorcing couples should make sure to keep thorough records of all financial information associated with the medical practice, such as income and expenses. This can be used to determine an equitable division of assets between the two parties. Additionally, it’s wise to keep copies of all important documents, such as contracts and agreements, in case they are needed in the future.
Consider a buyout
If one party wants to retain ownership of the medical practice, they may consider buying out the other’s share. You can do this by setting a fair market value for the practice and agreeing on terms for payment. This method can be beneficial as it allows one party to maintain control of their business while allowing the other to receive financial compensation.
Ultimately, divorce can be a difficult and emotionally taxing process, especially when it involves a business. Consider these tips to make the transition smoother, and consider creating a timeline for transferring assets and making other necessary changes. This can help ensure that both parties are treated fairly and that the medical practice can continue to function during and after the divorce.