An Honest And Smart Approach To Family Law

How divorce can impact your professional practice

If you own a professional practice, like a law firm, accounting firm or a doctor’s office, you’re probably worried about how your divorce will affect your business. You must have a clear understanding of what divorce could mean for your professional practice if you want to stand a chance of protecting your interests.

In this post we’ll look at some of the ramifications you could face and what you can do to mitigate them.

The potential impact divorce can have on your professional practice

Divorce can have tremendous implications for your business, especially considering that Arizona is a community property state where marital assets are supposed to be divided equally. Here are some of the ramifications that your practice could face:

  • Ownership issues: If your spouse is entitled to half of your interest in your business, you’ll either have to find a way to operate the business with them having a stake it in, or you’ll have to find a way to buy them out. Both options can shape your future in significant ways, so be careful when you think through how you want to go about doing that. If your divorce is particularly contentious or figuring out how to stay a part of your business is going to be too difficult, then you might have to consider whether a partnership buyout or business dissolution is right for you.
  • Licensing issues: When you go through a messy divorce, there’s a chance that unsavory facts about you and your marriage will become part of the public record. If you anticipate that your spouse will raise issues regarding substance abuse, domestic violence, or financial deceit, then your professional license could be put on the line.
  • Disruption of operations: Getting your divorce sorted out can take time and money, and restructuring your business to accommodate it could disrupt its operations. This can not only decrease your income, but it could also negatively impact your reputation and standing in the community.

With so much on the line in your divorce, is there anything you can do to minimize the impact your marriage dissolution has on your life?

What you can do to protect your professional practice through your divorce

You need to be prepared heading into divorce. If you’re not, then you can be taken by surprise in a way that’s detrimental to your business. So, consider doing the following before heading into your divorce:

  • Identify issues that could negatively impact your reputation and your practice.
  • Comply with your professional responsibilities if ethical considerations are brought into play.
  • Have financial goals that you want to achieve through the finalization of your divorce.
  • Be prepared to compromise as you negotiate resolution with your spouse.
  • Have a plan B in case you can’t secure the outcome that you want.
  • Utilize an appropriate business valuation method.
  • Be transparent with employees so that they understand how the business may be disrupted.

Advocate for the outcome you deserve

You’ve spent years building your career, your reputation, and your practice. Don’t let it all go to waste because you mishandled your divorce. Instead, be proactive in identifying the issues you’ll face and developing the legal arguments you need to effectively counter them.