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A physician’s practice should be evaluated during divorce

| Aug 26, 2020 | Family Law |

Residents of Indiana may want to be aware of the financials of doctors who are going through a divorce. It is urged that the practice in which the doctor is a member be evaluated as part of the asset review. An attorney versed in family law may help clients be aware of this important financial factor.

Some questions to be asked

Evaluating the practice this is a critical step as many doctors are part of a partnership or group practice. Some questions that might be asked include the following:

• What type of entity is it?
• Was it established before or after the marriage?
• How was the practice funded?

Help from an accountant

A forensic accountant may help a divorce attorney unravel the specifics of a doctor’s practice. They will look at assets, including office furniture, accounts receivable, office equipment, the lease and other factors. On the other hand, liabilities will be considered, such as taxes due, costs from insurance, retirement plan contributions, loans, and the location and profitability of the physician’s practice.

Misrepresentation is a crime

The accountant will want to be sure that the doctor has received a fair share of income while in the practice. Income that is represented by the divorcing spouse should be true as misrepresentation is considered fraud. The doctor must also notify his or her partners of the upcoming divorce as it could affect the group practice.

Family considerations

Whether you are a doctor in a practice or in another profession, you may want an attorney well-versed in family law to be on your side. This is a time when you may need guidance from a trusted law firm to help with complex issues.