Photo of the legal professionals at Maddox & Gerock, P.C.

A Reputation For Being Strong Advocates
Striving To Achieve The Best Possible
Results For Our Clients

Asset division lets you keep a professional practice in divorce

On Behalf of | Jul 26, 2021 | Property Division

If you own and operate a successful Virginia services business, a divorce will include it in the marital asset division. Chances are that you’re wondering if you can keep the practice or if you should sell it.

The practice value is an asset

When listing your practice, it will go into the asset column. It is interesting to note that this applies not only to practices you own outright, but also to ones that you only have a business interest in. The income you receive makes it possible to determine any support payments you may need to make.

Making the case to keep your practice

Trying to figure out how much an item is worth in asset division takes time and expertise. Moreover, if you want to keep your practice rather than sell it, you need to make the case that it is worth more with you in your position than without you. Valuation professionals might call this an intangible asset that includes customer loyalty or your professional reputation.

Working with an expert to arrive at realistic numbers

For the professional who wants to keep their practice, it is critical to make the case that personal professional goodwill powers the success of the business. However, if the valuation specialist finds that there is a case for transferable goodwill, there is a chance that the party wanting to sell the practice may find they have leverage. On the other hand, if the other side cannot quantify the goodwill and put a dollar figure behind it, the court will likely not consider it.

If you find yourself in a situation where you want to keep your professional practice in an asset division situation, it would be in your best interest to consult with an attorney.

FindLaw Network