Fayetteville Medical Professionals Divorce Lawyer

A Fayetteville medical professionals divorce lawyer can offer targeted representation for divorces that include a physician, dentist, specialist, or other healthcare practice owner. A medical divorce can bring up concerns with professional practices, partnership agreements, goodwill valuation, and intricate income issues.

When a practice has been cultivated over years of training and investment, ensuring the continued viability of the practice is a priority. At Bundy Law, our Fayetteville family law attorneys represent doctors and other healthcare professionals in Northwest Arkansas whose financial and professional interests need to be protected and strategically addressed during a divorce.

Hire a Medical Professional’s Divorce Lawyer

Bundy Law handles complex family law matters in Arkansas and Oklahoma involving significant assets and professional practices. Aaron Bundy is the only Fellow of the International Academy of Family Lawyers in Oklahoma and is also a Fellow of the American Academy of Matrimonial Lawyers.

Our Fayetteville divorce attorney represents high-income professionals in sophisticated divorce litigation involving substantial estates, interstate jurisdictional issues, and complex property division disputes.

Division of Medical Practices and Professional Goodwill

A physician or dentist who shares or fully owns a medical practice in Fayetteville faces unique divorce implications. The courts must decide whether the ownership interest in a practice is marital property and should be equitably divided, as well as how to value that interest.

Enterprise goodwill, which is associated with the business itself rather than the individual provider, may be subject to division, while personal goodwill is often treated differently.

Most medical practices in Northwest Arkansas are set up as PLLCs, partnerships, or professional associations, and the governing documents may impact how an ownership interest is characterized. The valuation process often requires a forensic analysis of the practice’s accounts receivable, equipment values, and reasonable long-term profitability.

Income Analysis for Physicians and Specialists

Physicians may be paid in a variety of ways, which can consist of layers of fixed, productivity, call, profit, and other incentive formulas. Income is often averaged for a period of time, not determined by the income in a single tax year, for purposes of a divorce.

Physicians who are employed by Washington Regional Medical Center, UAMS Northwest, or multi-provider specialty groups in Fayetteville or the Northwest Arkansas area may have payment formulas that vary due to patient numbers or payer mix and/or RVU production goals.

Factors that can contribute to the levels of income being reported can be understood by looking at the underlying hospital employment contracts and group compensation formulas, which can assist with financial conflicts and earning capacity issues.

Partnership Agreements and Shareholder Restrictions

Many medical professionals in Northwest Arkansas practice in a group setting.  These groups are typically organized as partnerships, LLCs, or corporations with a buy-sell agreement. These arrangements usually have provisions limiting transfer of ownership or mandating a buyout of a departing member.

If you are getting divorced and your practice has one of these restrictions, the court will have to take that into consideration in determining the value of the practice interest and whether the interest is divisible without penalty or buyout.

It is a good idea to review these restrictions at the beginning of the process so that an agreement can be reached on whether a buyout is required, an offset is appropriate, or some other solution is necessary to comply with the professional agreement.

​​Protecting Practice Continuity and Patient Relationships

Medical professionals who are divorcing often have an interest in protecting the continuity of their practice and their relationship with their patients. Claims can involve the exchange of financial information and professional evaluation that create administrative burdens for the medical provider. For doctors and specialists who practice in Fayetteville or in Northwest Arkansas, preserving patient trust and referral sources can be of particular concern.

Effective case management can reduce business disruption as financial matters are litigated. It may be possible to plan for minimal interruption to staff, scheduling, and operations while also complying with hospital or system requirements. The goal is to continue to meet professional obligations without disruption due to divorce.

FAQs

Can a Court Appoint a Forensic Accountant in a Physician Divorce?

The court may appoint, or the parties may use, a forensic accountant in a physician divorce. Medical practices with complex income generation and valuation require forensic accountants to clarify intricate areas, such as reimbursement schedules and expense allocations, that tax documents do not fully reveal. A forensic accountant might analyze production data, overhead distribution, and compensation formulas in contested cases.

Can Divorce Affect a Physician’s Malpractice Coverage or Liability Exposure?

Under normal circumstances, divorce does not have a direct impact on malpractice insurance policies. Changes to the business entity or ownership structure due to divorce proceedings may require an update to the existing malpractice insurance policy.

Physicians should determine whether they need to update their malpractice policies to include tail coverage when divorce proceedings lead to a buyout or changes in practice structure or partnership arrangements. Liability insurance coverage for medical professionals undergoing divorce proceedings should not be uninterrupted.

What Is the Divorce Rate in Arkansas?

Divorce continues to impact many professionals throughout the state. According to the United States Census Bureau, Arkansas’s estimated divorce rate for 2022 was 11.9 divorces per 1,000 women. The Centers for Disease Control and Prevention’s estimated divorce rate for 2023 for Arkansas was 3.0 per 1,000 population. With these statistics, it is no surprise that Washington County sees a great deal of complex divorce matters, including those of medical professionals.

How Are On-Call Schedules Considered in Custody Decisions?

An on-call schedule may be a factor in a custody determination if the work hours of a physician have a great impact on their availability for parenting time. Arkansas courts consider the best interests of the children and may review the typical call rotation, weekend requirements, and overnight coverage duty.

Medical professionals practicing in Fayetteville and Northwest Arkansas need to demonstrate consistent scheduling to help courts establish parenting times that work alongside their professional duties.

Contact a Fayetteville Medical Professionals’ Divorce Lawyer

Doctors in divorce face unique issues related to the practice structure, the source and nature of income, and professional responsibilities. If you are a physician in Fayetteville or other parts of NW Arkansas, hire a medical professional’s divorce lawyer from Bundy Law. We can help you untangle complex financial and custody concerns and safeguard the long-term viability of your practice. Call for a confidential consultation.