Just as with ownership of any significant asset, being the owner of a sports team comes with complex legal concerns....
If you are a doctor, your medical practice represents years of study and training and is your means of making a living. In divorce proceedings, protecting your medical practice must inform your decisions. The lawyers at The Riley Divorce & Family Law Firm could offer experienced guidance throughout the process.
If your spouse supported you while you attended medical school or completed your training, your spouse may believe they have an ownership interest in your earnings as a doctor. You and your spouse have equal interests in any property you acquired since the date of your marriage, unless the Ontario Family Law Act s.4(2) excludes it. If you were married when you established your medical practice, your spouse likely has an interest in half of its value.
However, any sacrifices to their own education or career that your spouse undertook to support your career are not calculated as property interests. Instead, you may have to pay spousal support to allow your spouse to preserve their current standard of living after divorce. Your divorce lawyer can review the spousal support guidelines with you, explain the factors judges consider when awarding spousal support and help safeguard your medical practice.
Property division in a divorce involves equalizing the financial benefit you and your spouse derived from the marriage. The spouse whose net worth increased the most splits the difference with the spouse who saw less benefit.
Many Ontario doctors provide medical services through a physician-owned professional corporation. If you bought into or established a professional corporation after your marriage, obtaining the necessary information to accomplish equalization requires valuing your interest in the professional corporation.
The corporation’s hard assets, income and goodwill all factor into the valuation, as well as its debts. You must account for any restrictions on transfers in the incorporation documents when assessing the value of your interest. It is critical for your divorce lawyer, accountant, and tax advisor to work in concert when valuing your medical practice in anticipation of divorce.
If you and your spouse cannot resolve issues relating to spousal support, property division and parenting arrangements, you may need to seek a court-ordered divorce. Court filings are public documents and may reveal the conduct or events that led to the decision to divorce. To protect your professional and personal reputation, it makes sense to do all you can to avoid a court-ordered divorce.
You can work with your divorce lawyers or a mediator to craft a workable separation agreement that protects your medical practice. Couples who have agreed on all relevant matters can file for a joint divorce or a simple divorce. Both legal processes require minimal court involvement and protect your privacy, as the underlying reasons for the divorce are not disclosed.
You worked hard to become a doctor, and your medical practice may be your most valuable asset. Preserving your professional reputation and ability to make a living should be a priority in your divorce.
Contact The Riley Divorce & Family Law Firm. We offer 24-hour availability and unmatched commitment to helping you reach your divorce objectives.
The Riley Divorce & Family Law Firm
