Some professionals view their practices as an extension of their vocation. In reality, a professional practice is both a vocational occupation and a business. And as a business, it can be part of the marital estate, subject to division during divorce.
Whether you own a professional practice or your spouse owns a practice, questions involving the practice’s valuation are key. You need a divorce attorney who will protect your interests so that you receive your fair share of the marital assets the practice represents.
Put Our Knowledge And Capabilities To Work For You
The Law Office of David Pedrazas, PLLC, has extensive experience in divorces involving professional practices and other types of businesses. Attorney David Pedrazas understands the many complex aspects involved in valuing a practice and dividing the marital portion of that value as well as related issues that can affect the property settlement such as alimony. When necessary, our law firm can retain the services of professional practice valuation specialists who can provide guidance.
Valuing A Professional Practice
For some professional practices (such as dental practices), there is an active resale market, making it easier to value the practice for the purposes of property division. Practices involving other types of professionals (for example, a psychologist or marketing consultant) can be solely dependent on the earning potential of one professional.
For those reasons, it is important to carefully analyze both the bricks-and-mortar value of the practice and the other, more subjective factors that contribute to the value of the practice. Some of these factors include:
- The stability and predictability of the practice’s revenue stream
- The age of the professional and how close he or she is to retirement
- Whether there are other partners in the practice
- How much time and effort must the professional expend each year to maintain the practice’s revenue stream
- The value of the practice’s hard assets
- Factors specific to the practice that must be evaluated on a case-by-case basis
Other complicating issues arise in situations in which one spouse sacrificed his or her career to help the other spouse obtain his or her professional degree. In addition, in some cases it may make sense for the spouses to agree to the provision of alimony as part of the settlement, while others may prefer a one-time division of marital assets.
Whatever your situation, the Law Office of David Pedrazas, PLLC, has the experience and knowledge needed to protect your interests.
Contact A Lawyer
For a free consultation about a divorce case in Utah, contact the Law Office of David Pedrazas, PLLC, in Salt Lake City.