Divorce can be complicated for any professional, but for medical practitioners, the stakes are particularly high. A medical practice is often one of the most valuable assets in a divorce, and determining whether it is marital or non-marital property is critical. In Illinois, the division of property follows equitable distribution laws, meaning that assets are not automatically split 50/50 but rather divided fairly based on various factors.
If you own a medical practice and are facing a divorce, you may be concerned about whether you can retain ownership and control. The outcome will depend on how the practice was established, whether it increased in value during the marriage, and how both spouses contributed to its growth. Understanding Illinois divorce laws and property division statutes will help protect your professional future.
Under 750 ILCS 5/503, Illinois law differentiates marital and non-marital property. A medical practice may be considered marital property if it was established or significantly increased in value during the marriage. If the practice existed before the marriage and remained separate from marital assets, it may be classified as non-marital property.
Factors that determine whether a practice is marital property include:
If a spouse worked at the practice, managed finances, or provided support that contributed to its growth, the practice may be considered a marital asset.
Determining the value of a medical practice is a very complex process. Illinois courts often require business valuation experts to assess the practice’s worth. The valuation process typically includes:
The concept of goodwill plays a very important role in valuation. Personal goodwill, based on the physician’s reputation, is usually considered non-marital. However, enterprise goodwill, tied to the business itself, may be subject to division.
If a medical practice is ruled marital property, there are strategies to retain ownership without sacrificing its financial stability. Other solutions could include:
In cases where a spouse sacrificed their career to support the medical professional’s practice, courts may award spousal maintenance under 750 ILCS 5/504. The amount and duration of spousal support depend on factors such as:
Courts aim to balance financial fairness while allowing the medical professional to continue operating the practice.
Beyond financial concerns, divorce can impact medical licensing, ethics, and patient privacy. Physicians must make sure that:
A well-structured divorce settlement can protect both the practice and professional reputation.
To establish that a medical practice is non-marital, provide documentation showing that it was founded before the marriage or funded entirely with non-marital assets. Business records, tax returns, and financial statements can help support non-marital classification.
If a spouse contributed time, money, or labor, they may have a claim to a portion of the practice’s value. Courts will assess the level of involvement and determine an appropriate division based on Illinois property distribution laws.
In most cases, courts do not force joint ownership unless both spouses actively practice medicine together. Instead, the spouse may receive financial compensation rather than a direct ownership stake.
Planning ahead is key. Consider a postnuptial agreement, consult with a business valuation expert, and work with a divorce attorney to negotiate a settlement that allows you to retain full control of your practice.
If your practice is part of a partnership or group, other physicians may have contractual protections against ownership changes due to divorce. Operating agreements and buy-sell clauses can help safeguard the business.
If a spouse contributed to the practice’s success, courts may award spousal maintenance. The financial impact will depend on income, assets, and overall property distribution.
If spousal support is involved, remarriage may alter financial obligations. However, ownership of the practice itself should not change unless new marital agreements affect its status.
The timeline varies, but complex business valuations, negotiations, and court proceedings can extend the process. Working with an experienced attorney can help expedite resolution.
Divorce is challenging, but with the right legal strategy, you can protect your medical practice while ensuring a fair settlement. At Keller Legal Services, we understand the complexities of divorce for medical professionals and work to secure the best possible outcome.
Contact our Naperville divorce lawyer at Keller Legal Services by calling 630-505-1515 to receive your free consultation. We represent clients in Naperville, Chicago, and throughout Illinois. Let us help you safeguard your medical practice and financial future.
