Could My Spouse Get a Share of My Medical Practice During Our Divorce?
Doctors The Florida Department of Health reports that there are nearly 90,000 physicians who hold a medical license to practice in Florida. Many of whom own their own professional practice. You may be wondering: Could my spouse be entitled to a share of my medical practice during our divorce? In Florida, the answer is yes—if the business is a marital asset, your spouse may have the right to a share during a divorce. Here, our Boca Raton divorce attorney for physicians provides an overview of key things to know about your professional practice and your divorce in Florida.
Know the Law: Equitable Distribution in Florida
Florida is an equitable distribution jurisdiction (Florida Statute § 61.075). The standard has big implications for divorce. If you and your spouse are going through a divorce—whether you are a doctor or otherwise—then your marital assets will be split in an “equitable” manner. That means each spouse will get their share of the assets. An equitable distribution may or may not be equal.
Understanding the distinction between marital property and separate property is crucial in this context. Only marital property is subject to equitable distribution. Broadly defined, marital property includes assets and debts acquired by either spouse during the course of the marriage and property or assets that can have significant value during the marriage. A business, including a medical practice, can be deemed marital property.
Tip: A doctor’s medical practice that is marital property will be subject to equitable distribution in Florida. On the other hand, a practice that is separate property—such as one that is protected by a valid prenuptial agreement—can be kept out of the divorce.
Medical Practices are Rarely “Split”—Monetary Consideration is Made
When it comes to dividing a medical practice that is marital in a Florida divorce, the actual splitting of the practice is often impractical and it is rarely desirable. Instead, a monetary valuation is applied to determine the practice’s worth. The doctor will then typically “buy out” their spouse from the practice as part of the divorce settlement. In effect, that usually means that the non-doctor spouse will get some other financial consideration as part of the property division settlement. Though, that is not the only option. Unlike in some other states, Florida does not require medical practices to be owned by licensed doctors. A spouse could theoretically jointly own a medical practice with a doctor after a divorce. They could also be bought out in a more gradual manner.
A Comprehensive Valuation of Your Professional Practice is Essential
For a fair division of a medical practice in a divorce, a comprehensive valuation is essential. This valuation must consider various factors, including but not limited to the practice’s current financial status, tangible assets (medical equipment and real estate), accounts receivable, and goodwill associated with the practitioner’s reputation. You need a divorce lawyer who can connect you with the right financial experts to conduct an accurate valuation of the medical practice.
Contact Our Boca Raton Divorce Lawyer for Doctors Today
At Williams & Varsegi, LLC, our Florida divorce attorneys have the skills and experience to protect the rights and interests of doctors in family law cases. If you have any questions about your medical practice and your divorce, please do not hesitate to contact us today for a confidential consultation. From our Boca Raton office, our firm represents doctors in divorce throughout South Florida.
Source:
floridahealth.gov/provider-and-partner-resources/community-health-workers/HealthResourcesandAccess/physician-workforce-development-and-recruitment/2021DOHPhysicianWorkforceAnnualReport-FINALREPORT-10-25-2021.pdf
