Building a medical practice takes years of dedication and sacrifice. Now, divorce puts what you have built at risk.
Under Ohio law, courts divide marital assets equitably and your practice likely falls into that equation. Agreements like a prenup or a buy-sell could have offered protection, but you still have options even without them.
What Ohio law already sees in your practice
Ohio courts generally treat the growth in your practice’s value during the marriage as marital property. However, income already spent on marital expenses is not separately divided. Judges also consider the length of your marriage and what you and your spouse each contributed.
Courts include your personal goodwill as a physician in the marital estate, which means they can divide the value of your reputation and patient relationships. Enterprise goodwill belongs to the practice and courts can also divide it.
Courts also rely on a formal business valuation. The method you use can produce very different results. This would include income, market or asset-based valuations.
Steps that can still shift the outcome in your favor
Even without early protections, you may still achieve a strong outcome. Several helpful options include:
- Getting a neutral business valuation: Courts weigh conflicting valuations. You would need a professional who understands how Ohio values both enterprise and personal goodwill. This is to make sure the valuation process does not make your practice’s divisible value look higher than it is.
- Recording separate versus marital contributions: Funds contributed before the marriage or received as inheritance may count as separate property.
- Negotiating for other marital assets: You may keep full ownership by offering assets in exchange for the practice’s value. This could include retirement accounts or the marital home.
- Setting a buyout payment plan: If a buyout becomes necessary, Ohio courts can allow payments over time and reduce the immediate financial pressure on your practice.
- Keeping normal professional operations: Ohio courts closely review sudden changes in practice finances or staffing. Stability protects the valuation and your credibility.
The right combination of these strategies depends on the specific facts of your case.
Your practice deserves the same care you give your patients
Ohio courts handle these cases step-by-step. In addition, the outcomes depend heavily on legal strategy and preparation. Because of this, it helps to have legal guidance who understands how these issues affect your divorce.