Divorce and Division of Professional Practice
The division of assets during a divorce is a complicated matter…
The division of a professional practice even more so. Professional practices of doctors, architects, engineers, accountants, and lawyers are built after years of hard work and it is not easy to attribute a dollar value to a practice. There are many factors to be considered.
Experienced divorce lawyers at the Law Offices of Alex R. Hernandez Jr. who have handled cases involving family law can help you get a satisfactory financial settlement from the division of your professional practice. Our attorneys can protect your source of livelihood and ensure a secure future for you.
The first step is to find out whether the professional practice is marital property, and therefore subject to division. The next step is having an accurate valuation of the property completed by assessing its worth, assets, real property, and physical property belonging to all parties concerned.
Goodwill held by a professional practice is a critical component and contributor to its value. It is an intangible feature that brings in a very tangible income. It is difficult to valuate. Often, professional practices form partnerships or break away from existing ones, they grow or shrink, or may be reorganized to benefit from limited liability laws. These factors affect the goodwill of a business. The date of valuation too plays a critical role in the fair apportioning of a professional practice. Community interests have to be considered in dividing community property. If a spouse has contributed to the acquisition of a professional degree by the other spouse, then he or she deserves a share from the practice.
Tax obligations of each spouse, the growth of the practice during the marriage, and contribution of each spouse to the appreciation in business are other factors that we consider.
Our lawyers often have to counter and disprove or prove charges of assets being hidden or undervalued. This is why we work closely with financial experts and valuation experts whose inputs often allow us to settle cases without a court hearing. We save our clients both time and money. If the issue does go to court, then you can rest assured that our divorce attorneys will aggressively fight for your rights.
Contact us now for more information!