Can a Professional Medical Practice Be at Risk During a Divorce in Florida?
Are you or is your spouse a doctor who owns their own medical practice? If so, your divorce case can be especially complex since the way a medical practice is addressed in a divorce can be complicated. If you are wondering: Is a professional medical practice a marital asset? The short answer is “it depends”—the business may or may not be a marital asset that is subject to property division in a divorce. Here, our Clearwater divorce lawyer for doctors explains the key things to know about a medical practice and its potential exposure in a divorce in Florida.
A Medical Practice May or May Not Be a Marital Asset
Whether a medical practice is exposed during a divorce will depend, primarily, on whether it is a marital asset or a non-marital asset. Here is a key overview:
- Practice Formed/Acquired Post-Marriage (Likely Marital Asset): If the medical practice was formed or acquired after the marriage began, it is typically considered a marital asset. A professional practice (or other business) can be a marital asset regardless of which spouse’s name is on the title or who actively works in the practice. Each spouse will have a claim on the value of the professional practice in the event of a divorce.
- Practice Formed/Acquired Pre-Marriage (May Be Separate Asset): If the medical practice was established or acquired before the marriage, it is generally considered a non-marital asset. However, any appreciation in the practice’s value during the marriage can complicate matters. If the increase is due to the efforts of the practicing spouse or from marital funds, that appreciation may be deemed a marital asset. A prenuptial agreement that protects the medical practice could play a role as well.
Marital Assets are Subject to Equitable Distribution in Florida
Once a medical practice is classified as a marital asset, it becomes subject to Florida’s equitable distribution laws (Florida Statutes § 61.075). Equitable distribution aims for a fair, though not necessarily equal, division of marital property between spouses. The court evaluates several factors, including the length of the marriage, each spouse’s economic situation, contributions to the marriage (both financial and non-financial), and any relevant factors.
A Proactive Approach is Needed to Protect a Medical Practice in a Divorce
Given the complexities involved in dividing a medical practice during a divorce, taking proactive steps is crucial for physicians. Implementing prenuptial or postnuptial agreements can clearly define the ownership and protect the practice from becoming the center of the divorce case. Once the divorce process starts, a comprehensive valuation of the professional practice is a must.
Contact Our Clearwater, FL Divorce Lawyer for Doctors Today
At the Law Office of Gale H. Moore P.A., our Clearwater divorce attorney has the skills and experience to represent doctors, other medical professionals, and their spouses. If you have any questions or concerns about the handling of a medical practice in divorce, we are here to help. Call us now or contact our family law firm online to set up a fully confidential consultation. Our firm handles medical professional divorce cases in Clearwater, Largo, and throughout Pinellas County.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html
