Protecting Medical Practices In Illinois Divorce

Owning a medical practice creates unique challenges to divorce proceedings in Illinois. Unlike other assets, a medical practice involves professional goodwill, business valuation, and patient confidentiality. If you are a dentist, physician, or medical professional facing divorce, it is important to understand how Illinois law handles the division of professional businesses. Under 750 ILCS 5/503, Illinois follows equitable distribution, meaning marital property is divided fairly—but not necessarily equally. Ensuring that your medical practice is properly evaluated and safeguarded is key to avoiding financial and professional instability.

Is A Medical Practice Considered Marital Property?

Under Illinois law, assets acquired during a marriage are presumed to be marital property, even if one spouse was the sole owner or operator. However, if the practice was established before the marriage, it may be considered separate property—unless marital assets were used to support or grow the business. Courts consider several factors when determining whether a medical practice is marital property, including:

Whether the practice was founded before or during the marriage
Whether marital funds were invested in the business
The role of the non-owner spouse in the practice’s success
Business debts and liabilities shared during the marriage
Professional goodwill and client relationships built over time

Valuing A Medical Practice In Divorce

A medical practice valuation is essential in determining how it will be divided during divorce. Illinois courts rely on financial experts to evaluate the business’s worth, revenue, assets, and goodwill. Goodwill refers to reputation, patient trust, and the ability to generate income beyond tangible assets. There are two types of goodwill:

Personal Goodwill – Tied directly to the physician’s reputation, skills, and ability to attract patients. Not considered marital property.
Enterprise Goodwill – Value associated with the business itself, including patient lists, branding, and ongoing contracts. It can be subject to division.

A professional valuation protects the medical practice from inflated claims by the non-owner spouse. Illinois courts often consider expert appraisals to determine an equitable settlement.

Preventing A Medical Practice From Being Divided

While Illinois law does not automatically require a medical practice to be split between spouses, the non-owner spouse may be entitled to a portion of its value. Steps to protect the practice include:

Prenuptial Or Postnuptial Agreements – A valid agreement under 750 ILCS 10/1 can exclude the practice from marital property.
Buy-Sell Agreements – If the practice is a partnership, a buy-sell agreement can restrict ownership transfers in the event of divorce.
Separate Business Finances – Keeping business and personal finances separate reduces the likelihood of the practice being treated as marital property.
Fair Compensation – If the non-owner spouse contributed to the practice, ensuring they were fairly compensated during the marriage can limit their claim to additional assets.
Structured Settlements – Instead of dividing ownership, courts may award other marital assets to the non-owner spouse to offset the value of the practice.

How Spousal Support And Child Support Impact Medical Professionals

If the medical practice is a substantial source of income, the court may consider its earnings when calculating spousal and child support. Under 750 ILCS 5/504, spousal support (also called maintenance) is determined based on factors such as:

The income and earning potential of both spouses
The length of the marriage
The standard of living established during the marriage
Contributions of one spouse to the education or career of the other

Similarly, child support calculations under 750 ILCS 5/505 take the gross income of the medical professional into account. Courts may adjust support obligations if the medical practice experiences financial fluctuations.

Protecting Patient Confidentiality During Divorce

Medical professionals have a legal duty to protect patient confidentiality, even during a divorce. Courts may require business records to determine valuation and income, but protected health information (PHI) under HIPAA and Illinois law must remain confidential. If financial disclosures are needed, steps to protect patient privacy include:

Redacting patient names and identifying details
Using financial summaries instead of medical records
Requesting court orders to restrict access to business documents

Common Challenges In Divorces Involving Medical Practices

Divorces involving medical professionals can involve complex financial and professional considerations. Some of the most common challenges include:

Work Schedule Demands – Long hours and on-call responsibilities may affect custody and visitation agreements.
Practice Liabilities – If the practice has significant debts, courts may consider them when dividing marital assets.
Ownership Conflicts – If the practice is a partnership, other partners may be concerned about legal disputes affecting operations.
Retirement And Investments – Medical professionals often have substantial retirement accounts, investments, and stock options that must be accounted for in property division.

Illinois Divorce Frequently Asked Questions

What Happens If My Spouse Contributed To My Medical Practice?

If a spouse worked at or financially supported the medical practice, they may have a valid claim to part of its value. However, Illinois law considers equitable division, meaning they may receive other assets instead of business ownership.

Can A Medical Practice Be Considered Separate Property In Illinois?

Yes, if it was established before the marriage and no marital funds were used to support it. However, if marital funds helped grow the business, part of the practice may be considered marital property.

How Can I Protect My Medical Practice Before Getting Married?

A prenuptial agreement under 750 ILCS 10/1 can protect business ownership in the event of divorce. It must be voluntarily signed and fair to both parties.

Will My Ex-Spouse Have Access To Patient Records During Divorce?

No. Patient information is protected under HIPAA and Illinois privacy laws. Courts may require financial documents, but patient identities must be redacted.

What If My Spouse Refuses To Agree On The Business Valuation?

If there is a dispute over valuation, the court may appoint an independent expert to determine the practice’s worth. The final decision is based on objective financial evidence.

Does My Practice’s Debt Impact Property Division?

Yes. If the practice has loans, liabilities, or business debt, courts will factor them into the marital asset division. Debt may offset the value assigned to the practice.

Will I Lose My Medical License If I Cannot Afford Spousal Or Child Support?

Failure to pay court-ordered support can lead to serious legal consequences, including license suspension under Illinois law. If payments become unmanageable, requesting a modification through the court is critical.

Protecting Your Medical Practice During Divorce

If you own a dental or medical practice and are facing divorce in Illinois, taking early legal action is crucial. The Law Office of Fedor has the extensive experience you need in a complex divorce. Securing your business, financial stability, and parental rights requires an attorney who understands Illinois divorce law and the unique aspects of professional business ownership.

Call Our Chicago Divorce Attorney For Support And Guidance

Divorce can impact your career, your business, and your financial future. At the Law Office of Fedor, I am committed to helping you protect what you have built. Contact our Chicago divorce attorney at (847) 241-1299 for exceptional legal assistance for exceptional legal assistance and to schedule a consultation. I represent clients in Schaumburg and throughout Chicago, Illinois.