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When a physician gets a divorce in New York, his or her medical practice will be valued as part of the asset division process. This kind of valuation can be complex, and it is wise for both spouses to understand what it entails.
This task must be done to determine the value of the medical practice as a financial asset. It’s necessary to determine if the other partner is entitled to any financial award and how much they should receive.
Remember that a non-physician can’t claim ownership in a medical practice in many jurisdictions. This means that the individual won’t be able to take any ownership of the business. The parties can decide amongst themselves on a financial settlement, or the court can decide if this isn’t possible.
A part of this process is to seek financial experts to report on the value of the medical practice. Each side should have a representative who is willing and able to challenge and question the valuation. If this isn’t done correctly, one or both parties could be shortchanged in the settlement.
Several questions are asked during the process. This includes questions regarding the nature of the business entity, when it was established (before or during the marriage), how it was funded, and if there’s a buy/sell agreement.
Any divorce is going to be stressful. It doesn’t have to be when determining the value of your medical practice and if the non-physician spouse is owed any financial compensation. A professional can help sort out the details and ensure that the settlement award or amount the courts produce is fair.
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