Business Divorce for Plastic Surgeons – 6 Steps to Protect Your Practice and Your Future

Partnerships in plastic surgery can be powerful - combining skills, resources, and reputation to build a thriving practice. But, when visions diverge or conflicts escalate, a business divorce may become the best path forward.

For plastic surgeons, a business divorce is more than just a separation of partners - it’s a high-stakes process that can impact your reputation, finances, and patient care. Handling it strategically can protect your practice, protect your assets, and protect your long-term career.

Here are six steps plastic surgeons should take to navigate a business divorce successfully.

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1. Understanding the Legal Framework for Business Divorce

A business divorce involves dissolving or restructuring your partnership, often under your state’s partnership or corporate laws. For medical practices, it also means complying with healthcare regulations and patient care obligations.

Key things to consider:

• What does your partnership or shareholder agreement say about separation?

• Are there state-specific rules for dissolving a medical practice?

• How will patient care be transitioned during the process?

A partnership attorney can review your agreements and state laws to give you a clear roadmap.

Don’t make the first move without legal guidance — start with a business advisor.

2. Review Your Partnership and Ownership Agreements

Your partnership agreement or corporate bylaws are your playbook for how a business divorce unfolds.

Make sure you:

• Identify buyout provisions and valuation methods

• Check non-compete clauses and post-separation restrictions

• Understand how disputes are resolved under your agreement

3. Protect Your Financial Interests Early

The sooner you understand your financial exposure, the better you can negotiate a fair outcome.

This may include:

• Reviewing your practice’s current valuation

• Understanding your share of assets and liabilities

• Considering the tax impact of a buyout or dissolution

This is also the time to coordinate with your tax planning, financial planning, asset protection, and retirement planning advisors to make sure you’re protecting both current and future wealth.

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4. Decide Whether to Restructure or Fully Separate

Not all business divorces require a complete breakup. In some cases, restructuring ownership or responsibilities can resolve conflicts without closing the practice.

Options may include:

• One partner buying out the other

• Splitting the practice into separate entities

• Adjusting equity shares or voting rights

Choosing the right path often depends on your business structure or entity structuring, so it’s worth reviewing how different approaches affect liability, taxes, and operational control.

5. Maintain Professionalism and Patient Confidence

Patients notice instability, and rumors can damage your brand. Keep communications professional and consistent during the transition.

Best practices:

• Develop a joint communication plan with your partner

• Ensure patients are informed of changes to their care providers

• Maintain full compliance with HIPAA and medical record transfer laws

A smooth patient transition can help preserve your reputation long after the business divorce is finalized.

6. Have a Dispute Resolution Plan

If tensions are high, disputes can derail the process. A partnership dispute lawyer can guide negotiations or represent you in mediation or arbitration.

Your dispute resolution plan should address:

• How disagreements will be resolved if negotiations stall

• Whether mediation or arbitration will be attempted before litigation

• Who will control daily operations during the separation process

The right legal strategy can keep you secure while building your career. Contact our business attorney to get started.

Secure your Future. Key Considerations in a Plastic Surgeon Business Divorce

Before finalizing your separation, review these critical elements with your attorney:

• Valuation Method – How the practice’s worth will be calculated

• Buyout Terms – Payment structure, timelines, and guarantees

• Non-Compete Agreements – Geographic and time restrictions after separation

• Asset Division – Equipment, intellectual property, and real estate

• Liability Allocation – How existing debts and obligations will be split

• Future Planning – Aligning your vision with estate planning, banking, and exit planning goals.

FAQs About Business Divorce for Plastic Surgeons

What is a business divorce for a plastic surgeon?
A business divorce is the legal and financial separation of business partners in a plastic surgery practice. It can involve dissolving the practice, restructuring ownership, or one partner buying out the other.

How long does a business divorce take for a medical practice?
It can take anywhere from a few months to over a year, depending on the complexity of the practice, partner cooperation, and any partnership disputes that may arise.

Can a business divorce affect my ability to practice in the same area?
Yes. Many partnership agreements include non-compete clauses that may limit where and how you can practice after separation.

Why should I hire an attorney for a business divorce?
A trusted lawyer ensures the process is handled legally, protects your financial interests, and helps you avoid common mistakes that could harm your career.