Many people in the greater Denver area recognize that being a doctor is a prestigious and potentially very lucrative career. Many if not most doctors get compensated quite well. Those in private practice also have the benefit of owning their own business and being able to sell that business for money when they are ready to retire.
Like other businesses, a Colorado doctor's practice is subject to division in the event of a high asset divorce or a separation. As such, it may be necessary to put a value on her share in the practice so a court can fairly divide it. Incidentally, it is always a good idea even for a happily married doctor to have some idea of how much her practice is worth.
When it comes to divorce or separation, however, assigning an accurate value to a medical practice can be quite difficult.
The general principle of coming up with a hypothetical sale price is fairly straightforward. First, it will be necessary to get an accurate figure for the practice's revenue in a given year. Then, that number needs to be multiplied by an appropriate decimal which represents the overall market conditions, certain intangible factors and the like.
When it comes to specifics, though, the overall value depends on a number of details, some of which are highly subjective, like goodwill. Moreover, customary assumptions about the value of one's practice that held true a generation ago may no longer apply today.
For this reason, it is often best for a doctor to consult with an experienced family law attorney about any issues he may have with getting the right value on his practice. In addition to providing insight about the legal process, an attorney can also help him identify a professional appraiser or other expert who can assist him in his case.