When you have a medical practice in Illinois, your divorce process can be a complicated one. A practice is unlike other regular assets, and there are certain steps you will need to take to ensure a fair and equitable resolution.
Understand the value of the practice
Before the court makes any decision regarding your divorce, they will want to know how much you own as a spouse. They will, therefore, appoint an appraiser to determine the accurate value of all your assets, including your medical practice.
Typically, the appraiser will use valuation methods such as income capitalization, market comparison, goodwill and asset-based approaches. To protect your individual interests, you may want to engage a separate appraiser for an independent evaluation of the practice.
Consider tax implications
In divorce proceedings related to medical practice, the court will consider the tax implications of any proposed settlement agreement. For example, if you want to buy out your partner, that transfer of assets could carry a tax burden that you also must share equitably.
Review existing documents
If there are any contracts, agreements or other documents that pertain to the practice, review them carefully and bring them all to court. This can include things like partnership agreements, accounts receivable and financial statements as well as leases and loan documents. Additionally, if you have marital agreements that cater to the treatment of the practice in case of a divorce, make sure to provide those too.
Negotiation, mediation or court divorce
It is important to keep in mind that you can use negotiations, mediation or court proceedings to settle a high-end divorce in Illinois. Negotiations refer to direct talks between you and your partner or their respective attorneys while mediation involves an independent mediator who will help both parties to reach a conclusion. Court proceedings take place when negotiations fail, and this is often the most costly method of settling a divorce case.
At the end of the day, every spouse wants to protect their interests and rights during the divorce. Taking the time to understand your situation and how the law may apply to you can help you make the best decisions for your future.