Wisconsin doctors put in a lot of hard work and dedication to enjoy success. However, if you own a medical practice and are going through a divorce, you might worry about what happens to all those accomplishments.
Property division in Wisconsin
Wisconsin is a community property state when it comes to divorce. That means that everything acquired during your marriage is divided equally by a judge unless the parties otherwise agree. If you are a doctor who has a medical practice, you’ll have to understand how this might affect your business. Anything acquired prior to your marriage is considered separate property unless it was commingled with your marital property. This might include your medical practice.
Your spouse may have some interest in your medical practice in this situation. For example, even if they are not a partner in the business, if they financially supported you while you founded it, they might be entitled to receive a portion of it. However, this would be a percentage of the value of the practice; your spouse would not become part-owner, as non-physicians are not allowed to have an ownership interest.
Protecting your practice
You worked hard to build your medical practice, so it’s crucial to protect it while going through a divorce. It’s not subject to property division if you have a prenuptial or postnuptial agreement. The former is a legal document created before getting married that protects assets, property and business. The latter is the same except that it’s created after your marriage.
You can also pay yourself a good salary from your medical practice. This strategy allows you to protect the business so that your spouse cannot gain anything from it during your divorce. Instead, you could rely on your personal assets when it comes to asset division and continue to maintain the practice.
Protecting your medical practice during a divorce can put your mind at ease as you continue enjoying your success.