Issue link: https://viewer.e-digitaledition.com/i/500040
I N TH E L A ST issue of Cleveland/ Akron/Canton MD News, we dis- cussed some steps a physician can take prior to and during a marriage to minimize his or her risk during a divorce proceeding. If a physician finds himself or herself in a divorce proceeding without having a prenuptial agreement, there are steps that the physician can take during that proceed- ing to minimize their risk and, potentially, attorney fees. Often, the most expensive part of these divorces is determining the value of the medical practice and in litigating the valuation with competing expert witnesses. A way to avoid much of that cost, expense and time is if the parties can consent to a joint financial expert to determine a value of the practice, and the parties agree to abide by that expert's findings. In that situation, the financial expert would simply do the evaluation and issue a report, and the court would accept the findings of the report with regard to the value of the business. Therefore, the costs would be limited to each party paying a share of the financial expert's expenses, rather than each party paying their own expert, and also would avoid litigation of the parties attacking each other's expert witness, which could be quite costly. Even if a physician marries without a prenuptial agreement and establishes a medical practice during the marriage, there are steps that it can take to help shield that medical practice in a divorce. If the physician has other partners or shareholders, the operating agreement for the practice can be structured in such a way that it protects the interests of the other owners in the event of a divorce, including provisions that prohibit the transfer of the shares of the company without the approval of the other partners. While that provision may not prohibit the physician from having to pay to the other spouse one-half of the court-determined valuation of the practice, it will prevent the sale of the practice and allow the physician to maintain his or her interest in the practice. The operating agreement also can contain provisions that establish a methodology for the buyout or valuation of the practice if a divorce is filed against one of the business' owners. While that provision may not bind the court, it does show an intention to minimize business disruption in relation to the other owner, which a court would likely respect. All divorce cases are different with their own unique circumstances that a divorce court would consider when determining the enforceability of a prenuptial agreement or whether property should be considered "separate." Therefore, a physician should consult with an attorney before entering an agreement or transferring "separate property" during the marriage to review his or her particular circumstance. NOTE: This general summary of the law should not be used to solve individual problems since slight changes in the fact situation may require a material variance in the applicable legal advice. Gregory D. Swope is an attorney with the law firm of Krugliak, Wilkins, Griffiths & Dougherty Co., LPA, in Canton, Ohio. ■ Protecting The Physician's Practice By Gregory D. Swope, Esq. Part 2 of 2 Divorce in Ohio: +++++++++++++++++++ + +++ + +++ +++++++++++++++++++ LEGAL EASE ❯ 3 0 | Cleveland/Akron/Canton MD NEWS ■ M D N E W S . CO M ■ M AY/J U N E 2 0 1 5