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Divorce And Medical Practice Essay

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Top 4 Ways a Divorce Can Affect Your Medical Practice
An issue that is frequently overlooked is what happens when the sole owner or partial owner of a medical practice is involved in a divorce. There could be far reaching consequences not only for the physician who is getting a divorce, but for the medical practice, staff members and partners.
Financial Transparency Could Cause Anxiety
Financial transparency may make you and/or your partners feel anxious because a meticulous investigation is time consuming and any inconsistencies will have to be addressed.
In the state of New Jersey, equitable distribution is the process used to allocate marital assets. An equitable distribution necessitates understanding the facts and equities as they pertain to each …show more content…
To determine a doctor’s true income, a qualified business valuation expert, who is familiar with accounting procedures, New Jersey laws and the evaluation methods applicable to medical practices, performs a thorough investigation. The expert uses methods like cash flow analysis or forensic valuation of the medical practice to attain an accurate result. The practice’s income and perks paid for the previous three to five years are considered.
An appraisal of a medical practice typically includes:
Accounts Receivable
Goodwill
Physical Assets and Intangibles
Office Location
Equitable Distribution of Marital Property
Equitable distribution of property means that the distribution is fair; however, that does not necessarily lead to a 50/50 distribution. For each case, the court takes numerous factors into consideration.
These factors include:
Prenuptial Agreements
Length of the Marriage or Civil Union
Standard of Living Sustained Throughout the Marriage or Civil Union
Contributions Each Spouse Made to the Earning Power of the Other
Assets Acquired During the Marriage (Marital Assets)
Both

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