How to Evaluate a Medical Practice In a Divorce
- 1). Identify key dates for the medical practice, such as the date when you or your spouse started the business or acquired the business. Gather financial documents related to the business, such as accounting records, bank statements, tax filings and information regarding assets and debts of the medical practice.
- 2). Research the divorce laws of the state where you plan to divorce, especially the laws regarding division of marital property and any specific provisions related to the evaluation of a business. Identify the valuation methods accepted by the family courts in your state and whether your state law specifies a method that you must use -- available methods include fair market value, fair value, investment value, intrinsic value or another method only required by state law in the event of a divorce.
- 3). Calculate a value for the medical practice using one of the valuation methods allowed by the divorce laws of your state and based on the financial information that you previously gathered. Prepare a report to discuss the value of the medical practice as an asset or liability to be divided between yourself and your spouse as part of the divorce; the report should include the financial information considered and the chosen valuation method.
- 4). Discuss the valuation of the medical practice with your spouse or your spouse's attorney if your spouse has legal representation. Compare your valuation of the business with your spouse's valuation of the business. Determine whether you and your spouse have valued the medical practice similarly; you may be able to negotiate a divorce settlement more easily if only a small gap separates each of your values for the medical practice.
- 5). Speak with your attorney, or consider hiring an attorney if you have not already done so, regarding the necessity of a trial to determine the worth of the medical practice if a significant difference separates your value for the business and your spouse's value for the business. Develop a legal strategy for your court proceedings with the assistance of an attorney, a valuation expert or both.