Law Office of Joanne Kleiner

Archives for November 2022

Nov 12

Divorce and your medical practice

The Impact of a Divorce on Your Private Medical Practice

The divorce rate among all physicians is 21.8%, which is lower compared to many other occupations. Scientists theorize that physicians marry later and spend more time choosing their spouses. However, when your marriage has come to an end, and you’re a practicing physician who owns a medical practice, speaking with a divorce lawyer will help you know how to protect your reputation, finances, professional reputation and future.

Evaluation of the Medical Practice

You will have some questions to address during your initial consultation with a divorce lawyer. These relate to the evaluation of your medical practice. Your lawyer may inquire about when the practice began to determine if you had it before your marriage or started it after your wedding. You may also need to answer questions about the type of entity your practice is under IRS regulations, how you funded the practice, whether or not there are co-owners and if shares were issued, if there is a buy/sell agreement in place, and if there are future vesting or stock options that others would be entitled to if you were to stay married. Remember that your soon-to-be ex-spouse may hire a forensic accountant to dispute your accountant’s findings.

Determine the Practice’s Assets and Liabilities

As the owner of a medical practice, you will want to work with a forensic accountant to categorize its assets and liabilities, and your divorce lawyer will need this information. This will include the list of long-term patients, office equipment, the building if you own it, accounts receivable and furniture. Your medical practice’s liabilities include rental or mortgage payments, equipment payments, taxes, payroll, insurance, retirement contributions, employee benefits and loans.

Evaluation of Your Income From the Practice

Working with a forensic accountant will also help determine if you’ve been getting a fair income from your medical practice. Many physicians only take a small salary and reinvest their earnings into their practice. The accountant may evaluate your income compared to other physicians within the same field and your income compared to other physicians who work in the same specialty and have the same level of experience.

Regulations Pertaining to the Ownership of Medical Practices

According to Pennsylvania law, only a physician can own a medical practice or be a shareholder in one. Because of this, your non-physician spouse can’t be awarded any ownership interest in the practice in your divorce settlement. Therefore, while the court will consider the value of the practice when approving the settlement, ownership will not be on the table.

Contracts Between Physicians Within the Practice

Another consideration for the future of your medical practice after a divorce is the terms of the contracts you have with other physicians in the practice. Some medical practices have contract stipulations requiring that if one member gets a divorce, they forfeit their stock. This stipulation is for the protection of the other members. Some contracts might allow you to repurchase your stock after a certain period, but this could allow your ex-spouse to protest the settlement and take you back to court.

If you’re a practicing physician and a divorce is in your future, a consultation with a lawyer could help you understand how divorce could impact your medical practice. For more information about the impacts of a divorce on your medical practice, schedule a consultation with the Law Office of Joanne Kleiner in Jenkintown, Pennsylvania by calling us at (215) 886-1266. Our quick contact form also enables you to request a consultation. Complete and submit the form, and an office associate will be in touch with you.

Nov 04

Planning for collaborative divorce sessions

What You Need To Know About the Collaborative Divorce Process

In the United States, the typical duration of a marriage that ends in a divorce is just eight years. Many people have heard horror stories about long, stressful divorce processes that end up with the airing of dirty laundry and much frustration in court, but working with a collaborative divorce lawyer could reduce the level of stress and the amount of time that it takes to end a marriage. Before you choose a collaborative divorce attorney, here are some questions to ask.

Will You Consider What my Spouse Wants in the Divorce Settlement?

This type of question gets to the heart of collaboration versus cooperation. A collaborative process ensures that the other person’s goals are met, even when those goals don’t match yours. Collaboration is more difficult than cooperation. It’s about mutual benefits and common goals. By the end of a marriage, many couples have few goals in common. However, some common goals might include ensuring what’s best for any minor children or protecting meaningful assets, such as the family home. A collaborative process requires both parties to respect each other’s goals and concerns and to understand that no agreement will be reached until both spouses meet their personal goals.

Can Divorcing Spouses Really Collaborate on the End of Their Marriage?

An attorney who has experience in collaborative law understands the differences between positions and interests. Positions relate to insisting on a specific result. Some would call this “a line in the sand.” Interests involve keeping an open mind about different options that meet one’s needs. Collaborative attorneys counsel their clients to explain their interests and avoid taking positions.

Do Collaborative Divorce Lawyers Work Well With Other Professionals?

Most collaborative divorce attorneys will work with other professionals who are advising their client or the other spouse during the divorce process. For example, the client might work with a financial advisor for clarification regarding financial concerns about spousal or child support, retirement, or avoiding bankruptcy. The financial professional could provide advice on structuring the settlement of the divorce in order to meet each spouse’s financial needs and goals. Collaborative divorce attorneys may also work with child therapists or psychologists who represent the child’s voice and perspective.

What Types of Collaborative Training and Experience Do You Have?

Collaborative law isn’t taught in every law school. An attorney who practices collaborative law often learns these techniques through professional associations or affiliations with specific groups. These groups offer ongoing training and educational opportunities. You may want to ask the attorney how many collaborative divorce cases they have worked on and how many of those cases were settled through collaboration versus how many of the cases went to court.

Do You Belong to Any Collaborative Law Groups?

The law evolves over time, and psychologists, legal scholars and other professionals frequently develop new techniques for successful collaborations between conflicted parties. A key way for a collaborative divorce lawyer to keep up-to-date on evidence-based collaborative processes is through a professional group affiliation. In Pennsylvania, many such groups exist. For example, the Central Counties Collaborative Law Community is a group consisting of licensed attorneys, psychologists, financial professionals and others who work with divorcing couples on collaborative agreements.

When a divorce is in your future, a collaborative process may reduce the stress on everyone involved. A consultation with divorce lawyer provides you with the information you need so you can make an informed decision about the legal process. To schedule a consultation with the Law Office of Joanne Kleiner in Jenkintown, Pennsylvania, call (215) 886-1266. You may also fill out our contact form, and an office associate will contact you.