In previous weeks, we have discussed the effect that a divorce can have on a family business. With different types of businesses come different methods you can employ to protect that entity. For doctors who own their own practices, there are creative ways that you can structure corporate documents to ease the sting of divorce on your practice.

While a prenuptial agreement essentially makes a business immune from the disputes that often come with property division, some spouses choose to avoid that route because of the sometimes-negative stigma it can bring to a marriage. To protect a medical practice, you can set in place things like a buy-sell agreement among shareholders or corporate insurance policies if a forced buy-out occurs. Postnuptial agreements, which would see your ex-spouse give up his or her stake in the practice, is also an effective route, and does not have the stigma of an unhealthy marriage attached.

But the savviest advice for a doctor with his or her own practice is to get a prenuptial agreement, regardless of your personal feelings on the matter. These measures resolve all financial issues before the marriage even has a chance to fail. This, unfortunately, is a notion most recognized by men and women who enter their second or third marriages. Many of them have seen the damage a costly divorce can have on their estate. By putting a prenuptial agreement in place, you will be preserving your medical practice, salary and everything else.

While these are measures that can help preserve a medical practice, they also translate to businesses of any industry. Prenuptial agreements are an essential part of estate planning and avoid seeing a spouse unfairly lose what they rightfully earned. Much like a living will, a prenuptial agreement ensures that, despite the tumultuous times of a divorce, your assets will be distributed according to your wishes.

Source: Physicians News Digest, "How to protect your practice from your spouse," Deborah B. Miller, Dec. 6, 2011