Bruce Bryen, CPA. Managing Partner The Snyder Group, LLC Printer Friendly Version

The Dentist and Divorce Litigation:
A No Win Situation

Divorce litigation not only causes financial and emotional concerns, it also may severely harm the dental practice.          

Dentists have many career goals. One is building the practice with an excellent level of care and service. This typically results in a good income level and the creation of an asset of considerable value in the dental practice. The efforts emanating from this success are usually conspicuous in the form of nice cars, clothes, houses and vacations. When divorce papers are served, the right to audit the dentist’s books, the intrusion of adversaries into the practice and the retention of attorneys and experts for defense begin. This is time consuming and expensive and can result in productivity loss for the practice.

What Does One Do in Defense?
If a complaint is served and litigation begins, retain the most experienced attorney and experts who understand dentistry’s financial side. Besides the mental trauma being suffered, a primary goal must be the survival of the dental practice. This is critical for the ability to continue in the life style enjoyed from the income previously generated that is hoped for after the divorce. It is difficult to find time to answer interrogatories, prepare for discovery and trial and continue to practice without a reduction in the time available to serve the patient. If the proper attorney and experts have been retained, he or she can go on practicing because those defenders will do their best to keep the dental practice as off limits as possible to the lawsuit.

Interrogatories, Depositions and Discovery
If proceedings continue, these are the next points in the process. When assisting your team of experts, be truthful with them. Don’t assume that the spouse’s experts and attorney are inept. If your answers are untruthful, credibility is lost and the potential for a large judgment increases. Make sure your attorney and experts know the facts. They will present evidence so that potential problems are deflected as well as they can be if they are aware of the answers in advance. If your experts and attorney are surprised by a response during depositions, discovery or during the trial, they will not be able to do their best.

Costs and Time
As the practice has shown signs of success over the years, the defense will be expensive and will last for a long time because the spouse’s attorney and expert team will attempt to wear down your resistance to their requests for documents and their demands for depositions of current and former employees and you, taking more time away from the practice in hopes of a large settlement.  Items that were disclosed to the spouse that were “written off,” because they may have been considered gray areas will be revealed to the spouse’s attorney. Your advocates must know about these before their opponents do. They will respond with a defense and possibly the reduction in settlement demands because of potential complicity in alleged actions. The preparation for the trial is intense. The trial itself is expensive from an emotional and financial point of view.

Be sure that your experts have credibility with the court. Look at their resumes. Find articles they have published and learn of their experience during litigation. Be sure they have litigation experience in the field of dentistry as it relates to financial matters. Your credibility is not enough. Your experts must have the judge’s favor and their backgrounds weigh significantly towards your success.

If at all possible, try to settle the litigation before a verdict is determined. You will save time and money and preserve your well-being. Remember that when the divorce is over, your dental practice will give you an opportunity to resume your life style. You may have to pay more now than you believe to be fair but it may be cheaper being amortized over the rest of your life than the gamble of trial without a sure verdict. The terms of the settlement are critical in relation to the financial loss that you incur. The cost may be reduced by a favorable tax structure. Assistance in this area may mean thousands of dollars in savings. Be sure that your experts have an understanding of the financial issues as well as the tax considerations before signing off on the documents.

Divorce Litigation
Remember that divorce litigation is a no win situation. Look towards the future for the cheapest and quickest settlement today so that you can renew your career goals.

Bruce Bryen, CPA has successfully assisted dentists with their personal and financial matters for more than thirty years. As a partner in The Snyder Group, he delivers creative and prudent financial strategies to help dentists build and protect wealth at every stage of their careers. His extensive expertise includes financing, debt restructuring, retirement planning and tax advising to help dentists keep more of what they earn. Bruce is also experienced in providing litigation support services and has testified on numerous occasions as an expert witness.

If you would like additional help or are interested in having Bruce Bryen speak to your dental society or study club, he can be reached at bruce@thedentistsnetwork.net  or at 1-800-988-5674.

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