How Can I Protect My Professional Practice During My Divorce?

 Posted on August 16,2023 in Divorce

When you are going through a divorce, you may be concerned about how it will affect a professional practice that you have worked hard to build. As you proceed with the process of ending your marriage, it is essential to take steps to protect your professional practice and ensure its continued success. Here are some important considerations as you address issues related to the division of marital property and other divorce-related concerns:

Hire an Experienced Divorce Attorney

The first step towards protecting your professional practice is to work with a divorce lawyer who understands the complexities of business ownership and how to address financial concerns during divorce proceedings. Your attorney will guide you through the legal procedures that will be followed during your case, advocate for your financial interests, and help safeguard your professional practice.

At Law Office of Vincent C. Machroli, P.C., our divorce attorney has extensive experience helping professionals navigate divorces while protecting their assets. We understand the unique challenges faced by professionals during the divorce process, and we can provide advice on the best ways to safeguard your business.

Meet Your Financial Disclosure Requirements

In any divorce case involving significant assets like a professional practice, full financial disclosure is crucial during the discovery process. It is important to be prepared to disclose all relevant financial information related to your practice, including income, expenses, debts (if any), and other financial documents. By ensuring that all documentation is prepared and disclosed correctly, you will be able to address concerns related to your business as you divide marital assets with your spouse.

Determine Business Value

Understanding the value of your professional practice is critical as you prepare to negotiate a property settlement during your divorce. Hiring an independent valuation expert can help establish an accurate assessment of the value of your professional practice based on factors such as revenue history, client base analysis, and projections for future growth. The evaluator may also need to consider intangible factors, such as the relationships you have built with your clients and your reputation in the community. With a clear understanding of the value of your practice, you can ensure that it will be addressed correctly during your divorce.

Understand Prenuptial or Postnuptial Agreements

You may have entered into an agreement with your spouse that addresses ownership of your professional practice in the event of divorce. A prenuptial agreement may have been created before getting married, while a postnuptial agreement can be created at any time during a marriage. These agreements may decide how you and your spouse will divide business assets and other marital property, while also addressing other financial topics during your divorce. If you have a prenup or postnup, you will want to review the terms of the agreement to make sure you understand how they will affect the divorce process.

Separate Personal and Business Finances

Maintaining clear boundaries between personal and business finances can help protect your professional practice during your divorce. Keep separate bank accounts and credit cards solely for business purposes to avoid commingling funds, which can complicate matters when dividing property during divorce proceedings. If you have not already taken steps to separate business and personal financial matters, you will want to begin doing so during your divorce, which will help ensure that you can manage financial subjects correctly going forward.

Safeguard Confidential Information

If your professional practice handles sensitive client data or proprietary information, it is essential to take steps to safeguard this information during your divorce. Consider implementing confidentiality agreements with employees or partners if necessary, as protecting trade secrets, for example, is crucial for maintaining the integrity of your business. Your attorney can advise you on strategies such as limiting access to certain documents, handling electronic files correctly, and taking measures to ensure that confidentiality is maintained throughout the divorce proceedings.

Contact Our Oak Park Divorce Attorney

At Law Office of Vincent C. Machroli, P.C., our Hillside divorce lawyer understands the complexities involved in protecting your professional practice as you work to dissolve your marriage. We are committed to providing you with personalized guidance and representation, helping you safeguard your assets and taking steps to achieve the best possible outcome for you in your case. If you need to address issues related to your professional practice during your divorce, do not hesitate to reach out to us at 708-449-7404 and schedule a free consultation. 

Sources:

https://www.ilga.gov/legislation/ilcs/documents/075000050K503.htm

https://www.valuadder.com/glossary/business-goodwill.html

https://www.thetaxadviser.com/issues/2014/dec/tax-clinic-08.html