Knowledgeable Divorce Lawyers Protecting Professional Practices in Wheaton, IL
When a business is part of a marital estate, a thorough examination and appraisal of the business must be conducted prior to the division of marital assets. This is especially true for professional practices. At Musielak & Rosinski LLC, we understand the importance of valuing your professional practice and protecting your rights to it in a divorce.
We represent doctors, lawyers, dentists, accountants, engineers, and other professionals who own practices, as well as individuals whose spouses own businesses. Our experience with high-asset divorce, as well as business and corporate law, means that we have the knowledge to value professional practices and advise you on agreeing to or contesting the division proposed by your spouse's lawyer.
Dividing a Professional Practice in a Wheaton Divorce
A professional practice may be one of the most valuable marital assets in your estate. That is why we work with financial experts, such as business appraisers, accountants, and tax professionals, to advise us on the following matters:
- Calculating the fair market value
- Appreciation
- Tax consequences
- The real estate value of the property
- The value of the equipment
- Whether the goodwill of the practice is marital property
In allocating assets, the court will consider both spouses' contributions, including whether one spouse contributed to the other spouse's education for a degree or professional license. The court may give the supporting spouse compensation for the practice in the divorce. This may be in the form of a greater share of the value of the practice or its profits, or the judge may choose to give that spouse a greater share of another asset instead.
Common Types of Professional Practices Affected by Divorce
Professional practices present unique challenges in divorce since their value often depends heavily on the owner's individual skill, reputation, and client relationships, rather than purely on physical assets. Medical practices, dental offices, and law firms are common examples, and each carries its own considerations when it comes to valuation and division.
Accounting firms, veterinary practices, and consulting businesses can raise similar issues, particularly when the practice was built or expanded during the marriage. Licensing requirements can also complicate things, since a professional license itself typically cannot be transferred to a former spouse, even if the practice built around that license is considered marital property.
Partnership agreements can make a case even more complex, especially when a spouse owns only a portion of a larger practice. Buy-sell agreements, partnership bylaws, and outside partners' interests can all affect how much of the practice is actually available for division and what restrictions apply to any potential sale or transfer.
Tips for Divorcing With a Professional Practice
Protecting your interests in a private practice during divorce can take a lot of effort. Start by gathering thorough financial records early, including tax returns, profit and loss statements, and any partnership or shareholder agreements. These documents form the foundation for accurately valuing the practice and identifying which portion, if any, qualifies as separate property.
Think carefully about whether keeping the practice or negotiating a buyout of the other spouse's interest makes more financial sense in the long run. In some cases, structured payments over time can allow one spouse to retain the practice without requiring an immediate lump sum payment that could strain its finances. Our firm can guide you through your case and help you make sound decisions to protect you in the long term.
Contact Our DuPage County, Illinois Asset Division Lawyers for Professional Practices
For additional information regarding your professional practice, speak with us today. Please call us at 630-344-6525 or contact our Wheaton, IL professional practice divorce attorneys to schedule a free consultation. We have offices in DuPage County.