Differences In a Divorce That Includes a Lawyer as a Client

 Posted on August 15, 2024 in Divorce

Research has placed the profession of bartending at the top of the chart for those most likely to get divorced time and time again. While you might think the reason for this is relatively low pay or the fact that the job requires interaction with alcohol, you would be wrong. Across all professions, those with the highest rates of divorce had non-traditional schedules and long hours. Of course, some of them also had those two things, along with low pay and dangerous conditions.

While lawyers might not fall under low pay or hazardous working conditions, many do have very long hours and non-traditional schedules. This is true, especially for new lawyers and lawyers in very large law firms. Regardless of the reasons, lawyers, like everyone else, can find their marriage falling apart and may choose to divorce. Splitting up a business or professional practice adds extra layers of complexities to divorce and requires specific knowledge and experience.  

It goes without saying that spouses should always have their own divorce attorney and that attorneys who are divorcing should never represent themselves. If you are a lawyer facing divorce, you need a Novi, MI divorce lawyer who has a deep understanding of how professional practices are split and whose strong advocacy will ensure you receive the best outcome possible. The attorneys at Elkouri Heath, PLC can provide the knowledge and skills necessary to ensure your practice of law remains your chosen career, even in the face of divorce.

How Equitable Distribution Affects Marital Asset Division

Splitting a professional practice in half is largely prevented in the state because only a person licensed to participate in a particular profession can be considered the "owner" of said practice. This would usually prevent courts from splitting a professional practice during a Michigan divorce unless the spouse also happens to be a licensed attorney. Either way, under the equitable distribution laws of the state, a divorcing attorney may be required to give up other marital assets in order to keep his or her law practice.

A handful of states across the United States are considered community property states, which means all marital property is split exactly down the middle, regardless of any extenuating circumstances. Michigan is an equitable distribution state, which means marital property is split fairly, but "fair" may not necessarily equal 50/50 and takes many factors under consideration.

How is a Professional Practice Dealt with During a Michigan Divorce?

While a regular business falls under the state’s equitable distribution laws, professional practices are much more complicated. If one spouse owns a dog grooming business, it would be divided according to whether it was owned before the marriage, how much its worth has increased since the marriage, and whether the other spouse materially participated in the business. In other words, it is treated like a marital asset.

Since Michigan law restricts ownership of a professional practice to the person licensed to practice, while the usual equitable distribution laws apply, there are additional issues. Like any business, the court will determine whether the practice was established before the marriage or after, whether the worth has increased since the marriage, and whether the non-licensed spouse materially contributed to the worth of the business.

Examples of such participation could be a spouse who supported the other spouse while he or she studied for a law degree or a spouse who has acted as CPA/bookkeeper for the firm since it began.  Once those questions are thoroughly answered and the practice receives a valuation, the non-practicing spouse is likely to be entitled to a greater share of the couple’s other assets to offset the value of the law practice.

Contact an Oakland County, MI Divorce Attorney Experienced in Professional Practice Division

The attorneys at Elkouri Heath, PLC have nearly five decades of combined family law experience. As Northville, MI divorce attorneys with extensive knowledge and skills associated with the division of professional practices, we have built a positive track record of success. Contact Elkouri Heath, PLC at 248-344-9700 to schedule a free consultation and receive compassionate, customized representation.