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Factors when valuing a doctor’s professional practice in divorce

On Behalf of | Jan 31, 2024 | Divorce

In 2020, Connecticut had 3,864 active primary care physicians, according to the Association of American Medical Colleges. Divorces involving professionals such as physicians bring about unique challenges.

This is particularly true for evaluating the value of their professional practice.

The nature of the practice

Different medical specialties may have varying income streams and business structures. For instance, a solo practitioner in a specialized field may have a different practice value versus a doctor in a group practice. Understanding these distinctions is necessary for an accurate valuation.

Patient and referral relationships

A doctor’s relationships with patients and referral sources play a major role in the valuation process. Patient loyalty and consistent referrals contribute significantly to the financial success of a medical practice. Evaluators must assess the strength and stability of these relationships, as they directly impact the long-term viability and value of the practice.


In Connecticut divorce cases, the concept of “goodwill” holds significance when valuing a doctor’s professional practice. Goodwill encompasses the intangible assets of the practice, such as the reputation, patient base and relationships with other health care professionals. Determining the fair market value of goodwill requires a thorough analysis.

Financial documents

Accurate valuation demands a review of the doctor’s financial documents. Income statements, balance sheets and tax returns provide insights into the financial health of the practice. Potential future changes in revenue, expenses and market conditions are also factors.

Valuing a doctor’s professional practice in a Connecticut divorce necessitates a thorough understanding of the unique aspects associated with medical practices. It ensures a more accurate and equitable valuation process.