Divorce is full of challenges and frustrations, and for most couples, asset division is one of these. For spouses who own or manage a professional practice, the idea of dividing something so intimately connected with one’s own labor, ability, and identity may feel insulting. Nevertheless, Michigan law requires all marital assets to be divided, and professional practices are rarely excluded from these. If you are a dentist, psychologist, physician, attorney, consultant, or any other professional who has their own company, read on and then contact a Michigan divorce attorney for assistance with your case.
Is My Professional Practice Marital Property?
Professional practices are built carefully with years of effort. Often, even if only one spouse is involved in working with a professional practice, both spouses have contributed to the worth and development of the practice over the years. This is especially true if one spouse worked while the professional spouse pursued an education and got their business off the ground. Practices begun after a couple is already married are considered marital property in Michigan.
Even if a practice was opened before the spouses got married, any increase in the value of that practice is usually marital property, even if the other spouse was hardly involved in the practice. Having a prenuptial or postnuptial agreement may protect one spouse’s exclusive ownership of a professional practice, but not always.
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