Dividing Professional Practices in Texas
A professional practice could be one of the most valuable assets to consider during your divorce. Accurately characterizing, valuing, and dividing professional practices are essential to ensure that both parties receive a fair divorce settlement.
Dividing professional practices during divorce can pose unique challenges – such as when one party holds a professional degree or license. For example, a professional degree acquired during marriage is not considered community property; however, if community property was used to support one spouse in obtaining that professional degree or license, we can assist you in determining whether the other spouse may be entitled to compensation through spousal support or a greater share of another marital asset.
At Carter Morris, LLP, we represent doctors, lawyers, dentists, accountants, and other professionals – or their spouses – with the complex process of business valuation and dividing professional practices during divorce. Our Houston divorce attorneys have extensive experience handling high-net-worth divorce cases and dividing professional practices. While the majority of our clients come from southeast Texas and the greater Houston area, we have the resources to represent clients statewide.
Southeast Texas Divorce Attorneys
In Texas, a professional practice that was started during marriage is presumptively considered community property and is included in the value of the community estate during a divorce. However, even a practice that was started before marriage or with separate funds may be subject to claims during divorce if community property was used to fund or expand the business. Conversely, a practice started during marriage could be characterized as separate property, depending on the circumstances surrounding its formation and capitalization. We will assist you with the complex process of determining whether your professional practice is characterized as community property, separate property, or a mixture of the two.
Carter Morris, LLP works with forensic accountants and other business experts to accurately characterize, value, and divide professional practices. When determining the value of your private practice, important considerations include the value of the property and equipment, professional degrees and licenses, appreciation, goodwill, and tax consequences.
In most cases involving a professional practice, the business is not divided between parties. Instead, one spouse keeps the business and the other will receive an additional amount of other marital property to ensure a just and right division of marital property.