What Happens to My Private Practice in a Texas Divorce?

 Posted on August 19, 2025 in Divorce

For professionals who own their own business, divorce presents some unique complications. Doctors, dentists, lawyers, therapists, accountants, and other private practitioners in Bexar County may worry about whether they will lose control of the business they have spent years building. Texas law has clear rules for dividing property, but how those rules apply to a private practice can be complex.

As of August 2025, Texas follows a community property system under Tex. Fam. Code § 3.002. This means that most property acquired during a marriage is jointly owned by both spouses. In a divorce, community property must be divided in a "just and right" manner. For business owners, this does not necessarily mean selling the practice and splitting the proceeds, but it does mean that the value of the practice may be part of the division process. If you are a licensed professional working in a private practice, our San Antonio, TX divorce attorneys can help you fight for a divorce settlement that reflects your hard work. 

Is a Private Practice Community or Separate Property in a Texas Divorce?

The first question is whether the practice is considered community or separate property. If you started your practice before marriage, some or all of it may be classified as separate property. However, growth in value during the marriage may still be subject to division if it was supported by marital funds or effort. If you started or significantly expanded the practice during marriage, it is more likely to be considered community property.

Determining the correct classification of a private practice often requires detailed financial records and sometimes expert testimony. Courts will look closely at when the practice was formed, how it was funded, and how much marital effort contributed to its success.

How Are Private Practices Valued in Divorce?

Valuing a private practice is rarely straightforward. The court must determine the fair market value of the business, which may include:

• Tangible assets, such as office equipment or real estate

• Accounts receivable and ongoing contracts

• Goodwill, which refers to the reputation and client base of the practice

Texas courts make an important distinction between personal goodwill (which is tied to the owner’s individual skills and reputation) and business or "enterprise" goodwill (which exists apart from the individual). Personal goodwill is not considered divisible in divorce, while business goodwill may be. For example, if a medical practice relies heavily on the doctor’s personal reputation, that goodwill likely stays with the doctor.

Division Options for a Private Practice in a Divorce

In most cases, Texas courts avoid forcing the sale of a professional practice. Instead, the owner usually retains control of the business but must offset its value in other ways. This could involve awarding the other spouse a greater share of other assets, such as real estate, investments, or retirement accounts.

Some spouses agree to creative settlements, such as structured payments over time. These arrangements allow the practice to stay in operation while ensuring that the non-owner spouse receives his or her fair share of marital property.

Protecting Your Private Practice During Divorce

If you own a private practice, protecting it in divorce requires careful preparation and strategy. Collecting accurate financial records, keeping clear boundaries between personal and business accounts, and having professional management practices can all help. In some cases, prenuptial or postnuptial agreements may define how the practice is treated, but without such an agreement, the court will apply Texas community property law.

Contact a San Antonio, TX Divorce Attorney

At Brandon Wong & Associates, our firm focuses exclusively on family law. We are energized, hard-working, and ready to fight for your family. Whether you are a doctor, lawyer, or other professional, we can help you protect your practice while arguing for a fair property division. Call 210-201-3832 today to schedule a free consultation with a Bexar County, TX asset division lawyer for licensed professionals.