If you’re a physician amid a divorce in Indiana, your medical practice is doubtlessly at the top of your mind. Therefore, the practice must be evaluated as an asset accurately and comprehensively, so you’ll know what to expect moving forward.
Your divorce may become a group problem
For most physicians, staying in business today means being part of a group practice or partnership. In some cases, the physician may have to tell the others in practice about the divorce because there’s the potential that it will become everyone’s problem.
Critical factors in the divorce include the methods that were used to fund the organization, if there is a buy or sell agreement involved and whether participants had stock issued to them. The kinds of information forensic accountants look for in these evaluations are:
- Financial and tangible assets
- Accounts receivable
- Office equipment
- Office Lease
There’s also the intangible asset of goodwill, which may be harder to calculate. Your potential liabilities include taxes, insurance, and any contributions you’ve made to loans or retirement plans. The location of the practice and its profitability also come into play.
The risk of fraud
It’s essential to be careful that the amount of money the divorcing partner was getting is in line with what the other partners in the practice received. And if a divorcing physician deliberately tries to misrepresent how much money their partner was getting from the practice, it’s a severe offense that may count as fraud. The same goes for those who purposefully suppress their spouse’s income.
As you are going through a divorce, it’s helpful if you know what questions to ask and what will be asked of you. Make sure you know the entity type if it’s a group practice, and review other vital details, like when your practice was established—knowing if the course was found before the marriage started or while it is essential.