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Medical Professional Divorce: Protecting Your Practice and Assets

On Behalf of | Sep 25, 2024 | Divorce

There is nothing simple about the division of marital assets in an Orange County family law matter, but if you are a medical professional attempting to protect your practice and assets in the face of divorce, the complication factor is considerably higher. If this is the challenging situation you find yourself in, you should consult with an experienced Orange County family law attorney as soon as you’re able to do so. Taking early action can make a considerable difference in the outcome of your case.

Your Practice

If you’re a doctor with a medical practice, you not only worked hard to obtain the necessary education to get where you are but also poured your heart and soul into building your business. If you’re facing an Orange County family law case, it can be difficult to imagine what that’s going to mean for your practice, but one thing you shouldn’t do is avoid the issue. A trusted family law attorney is standing by to help.

California: A Community Property State

Every family law matter in Orange County and throughout California is no-fault, which means your divorce will be based on irreconcilable differences – and neither spouse’s actions are likely to have any bearing on how your community property will be divided. In California, everything that you, your spouse, or you and your spouse together acquired over the course of your marriage is considered community property, and in the event of a divorce, these assets must be split between you evenly.

If you started your medical practice during your marriage, it’s almost certainly community property. If, however, you had the practice when you married, the value at the time of your marriage will likely be classified as a separate asset – but a portion of the amount that it has increased in value by the date of your separation may be treated as community property.

Your Closely Held Medical Practice

For the purposes of a divorce in Orange County family law court, your closely held medical practice is considered a marital asset. Addressing the division of its value in a divorce is complicated enough, but if your spouse has any involvement in your practice’s operations, it can enhance the challenges you face.

Each of the following factors can play a primary role in how your medical practice will be addressed in the division of your community property.

  • The overall value of the real estate and the professional practice itself – each of which is likely to require a professional evaluation
  • Whether or not your practice is characterized as only community property – or if some part of it is considered separate which is determined by when it was started
  • If your practice is separate property, the amount that your practice appreciated over the course of your marriage

The matter of your medical practice is far too important to leave to chance – working closely with a skilled family law attorney throughout the process is always to your advantage.

Additional Factors California Courts Can Consider

Orange County family law courts are required to equally divide community assets. There are additional factors that they can take into consideration and that can affect how the assets in your unique case will be divided. Consider the following:

  • Your spouse can’t become a partner in your practice unless they are also a physician.
  • If you are awarded the practice, you will be required to pay your spouse fifty percent (50%) of the community value of the practice. This is paid with other offsetting community assets or with an equalization payment paid over a reasonable period of time with reasonable interest.

The Value of Your Practice

How your medical practice is addressed in your Orange County family law matter will hinge on its value, which will need to be assessed by a professional. The kinds of factors that can directly affect a medical practice’s value include the following:

  • The number of years in practice
  • Your practice’s location
  • The overall value of the building, fixtures, and medical equipment
  • Your accounts receivable
  • Your age
  • Your total compensation
  • Your specialty

Make the Call to an Experienced Orange County Family Law Attorney Today

The dedicated Orange County family law attorneys at Minyard Morris take great pride in their impressive track record of successfully protecting the financial rights of medical professionals like you throughout the divorce process, and we welcome the opportunity to also help you. Learn more about what we can do for you by reaching out and contacting or calling us at 949-724-1111 today.