Published on: 10/01/2015
Rob Partin authored an article on business valuation for professionals, such as doctors and lawyers, to consider in Virginia divorces. The article appeared in the September 2015 issue of Virginia Medical Law Report. It is posted here with copyright permission.
You and your partners have a successful medical or legal practice. You manage the practice well and have relied on legal counsel to prepare you for potential changes and issues that may arise in the business. You set up your practice as a Professional Corporation or as a Professional Limited Liability Company to reduce potential personal liability. You and your partners signed a buy-sell agreement that requires any partner to offer their interest to the company or to the other partners at a predetermined price before they can sell to an outsider. Now your spouse wants a divorce. You’re not worried about your practice because the value of your interest in the business is set by the buy-sell agreement. Think again.
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