What Happens to a Professional Practice Upon Divorce?

picture of a professional standing at a window

What Happens to a Professional Practice Upon Divorce? Professionals with an ownership interest in their practice will likely find that there is a challenge in court regarding how to value their practice for purposes of distribution. This question is not settled by a partnership agreement defining the partner’s interest in a firm, and sole practitioner’s may find their practice exceeds the expected book value. Courts pay close attention to “mechanical” valuation techniques, but also look to the “goodwill” that the partner brings to the business. Goodwill is essentially a reputation that will probably generate future business, although it also includes

Continue Reading

Triple Play: What happens to a company when a partner goes through a divorce?

Picture of Richard H. Weiner

Triple Play is a weekly NJBIZ feature that asks top executives in New Jersey to talk about three things related to their industry. Richard H. Weiner is the managing shareholder of Hackensack-based law firm Aronsohn Weiner Salerno & Kaufman, P.C. We asked Richard to identify three effects on a company when a partner or shareholder goes through a divorce. 1. Other partners and shareholders can be impacted when the company’s equity/value becomes an asset subject to distribution in the divorce. The value attributed to an individual’s equity interest by a forensic accountant/business appraiser for divorce purposes could be very different

Continue Reading