Divorce is always a viable way to end a marriage, but it’s important to consider how it can affect finances and assets. A medical practice is often a huge asset and can become involved in a divorce if the owner and their spouse are married. Fortunately, there are ways to protect your medical practice from getting included in the dispute.
Establish a prenuptial agreement
A prenuptial agreement is a legal agreement that outlines how financial and property assets will get divided if the couple decides to divorce. This can help protect your medical practice from being part of the settlement in case you separate in the future. If you don’t have a prenuptial agreement, you should try to establish one before getting married.
Keep things separate
In order to protect your medical practice from being included in the divorce settlement, it’s important to keep business and personal finances separate. This means keeping all receipts for business purchases and expenses in its own account. Additionally, make sure that any profits or income from the practice are not deposited into a joint bank account.
Having separate bank accounts can also ensure that your medical practice’s earnings remain in your own account and don’t get used for joint expenses or investments with your spouse. This is important to prevent any disputes over who owns what if you decide to get a divorce.
Create a family trust
Creating a family trust can help protect your medical practice from being part of any divorce settlement. A trust is an arrangement that allows you to transfer legal ownership of your assets, such as the practice, to someone else for the benefit of your family. You can designate who will receive what assets in the event of a divorce and set up the trust so that it does not become part of any marital property division.
While it may seem like a daunting task, it is possible to protect your medical practice from being included in the divorce settlement. Just remember to document all important information related to your medical practice to help you in case your medical practice becomes part of a divorce settlement.