A recent article in Physicians News Digest discussed options for doctors who want to protect their practice from a divorcing spouse. The article will be especially helpful to our readers who themselves practice medicine, but the principles behind it can easily be applied to those in other professions.

While prenuptial agreements can certainly avoid many problems down the line when a marriage fails, many people choose not to prepare them before marriage. While this isn't the best state of affairs, there are certainly ways to protect a medical practice from financial loss during divorce.

The following are among the options for those who want to protect their practice from a divorcing spouse:

Structuring corporate documents so as to insulate the practice from divorce proceedings

Buy-sell agreements among shareholders

Corporate insurance policies in the event of a forced buyout

Post nuptial agreements

Ensuring that every physician in the practice has an updated estate plan, especially in the event of a second marriage or when a spouse has children prior to the marriage.

Overall, prenuptial agreements are the best, most versatile option. Prenuptial agreements can set the financial tone of the marriage from its beginning to its end. One can specify whether a spouse will have any right to any interest in retirement benefits and the medical practice. It can also state whether or not the spouse waives the right to claim spousal support or alimony. A prenuptial agreement can also prevent your assets from going to the children of somebody else's children.

A number of marital issues can be addressed in a prenuptial agreement. There are certain limitations to prenuptial agreements, but overall they are very versatile and useful tools.

Source: Physicians News Digest, "How to Protect Your Practice From Your Spouse," Deborah Miller, December 6, 2011.