How to protect the your medical practice’s future in a divorce

On Behalf of | Nov 12, 2023 | High-Asset Divorce |

Getting a divorce in Illinois is sometimes the only option for unhappy married couples. Certain working adults, especially those in the medical field, sometimes have higher divorce rates than other professions. If you’re a physician going through a divorce or you feel a divorce is imminent, learning how to protect your practice is a smart decision.

Placing your practice in a trust

One of the best ways physicians can protect their businesses is by placing them in a trust. But you must avoid an illusory transfer, which means moving your practice to a trust that takes back anything given to the trust. You must be careful if you choose this option, ensuring you avoid an intent to defraud your spouse.

A prenuptial or postnuptial agreement

A prenuptial agreement is a legal agreement clarifying who owns what going into a marriage. Prenuptial agreements must occur before a marriage. However, married couples can sign postnuptial agreements that clarify asset rights. Neither option is possible if you and your spouse are currently divorced. However, a postnuptial agreement can be helpful if a divorce hasn’t happened.

Maintain accurate business records

Sometimes, the most helpful strategy for protecting your assets before a divorce is having sufficient evidence concerning your practice. This evidence can include your practice’s business valuations, financial records, and other relevant information. Having evidence can help protect your practice’s future if your former spouse makes false claims about it.

Going through a divorce is rarely easy. Having a support network is often helpful when your divorce is pending or currently happening. Friends, family and other supportive people can assist you in moving through this difficult situation.