Divorce for Physicians, Dentists and Other Professionals in SC

Reviewed by Carrie Warner, Attorney at Law, SC Bar No. 72836 · Last reviewed November 2, 2026

When one spouse is a physician, dentist, lawyer, CPA or other licensed professional, a South Carolina divorce often turns on a few hard questions: what the practice is worth, which part of that value is divisible, and what income the court should use for support. South Carolina divides marital property by equitable distribution, and the court weighs the factors in state law rather than applying a fixed formula. This guide explains the issues that come up most often and how to prepare for them.

What Counts as Marital Property in a Professional Divorce

Under S.C. Code § 20-3-630, marital property generally includes property acquired during the marriage and owned as of the date the divorce case is filed, with exceptions for things like inheritances, gifts from third parties and property owned before the marriage. For professionals, marital property may include:

• An ownership interest in a practice, partnership, professional association or LLC
• Accounts receivable and work in progress at the practice
• Practice real estate held in a separate entity
• Equipment, furniture and supplies
• Retirement plans, including 401(k), 403(b), 457 and cash balance plans
• Deferred compensation and bonuses earned during the marriage
• Stock options or partnership capital accounts

A practice started before the marriage may still have a marital component. Under § 20-3-630(A)(5), an increase in value of nonmarital property can become marital to the extent it resulted from the other spouse’s efforts during the marriage. See our page on marital vs. separate property.

Valuing a Professional Practice

A practice is usually valued by a business appraiser or forensic accountant. Each side may hire its own, or the spouses may agree on one neutral appraiser. Common approaches include:

• Asset approach: the value of the practice’s tangible assets minus its liabilities.
• Income approach: the value of the expected future earnings of the practice.
• Market approach: comparison to sales of similar practices.

The approach matters because it affects how much of the value comes from the professional’s own skill and reputation. Appraisers also adjust for owner compensation, personal expenses run through the practice, and one-time events. Our page on business valuation explains the process in more detail.

Personal goodwill vs. enterprise goodwill

Goodwill is the value of a business beyond its physical assets, such as its reputation and patient or client base. South Carolina courts have distinguished between two kinds:

• Personal (professional) goodwill depends on the individual professional’s skill, relationships and continued work. South Carolina courts have generally treated it as not divisible marital property.
• Enterprise goodwill belongs to the business itself, such as a recognized name, location, systems or staff that would bring in revenue without the particular owner. It may be treated as divisible.

Separating the two is often the most contested part of valuing a practice. Facts that may matter include whether the professional signed a noncompete, whether the practice has several providers, and whether patients or clients would stay if the owner left. Treat the goodwill question as a key issue to discuss with your appraiser and attorney early.

Buy-sell and operating agreements

Many group practices have buy-sell or operating agreements that set a price or formula for an owner’s interest. Courts may consider these agreements, but they do not always control the value for divorce purposes. Gather every version of these agreements, including amendments.

Is a Professional Degree or License Marital Property?

South Carolina courts have generally not treated a professional degree or license itself as property that can be divided. However, a spouse who supported the other through school or training is not without options. The court can consider those contributions when dividing other property and when deciding alimony. Under § 20-3-130, the six forms of alimony include reimbursement alimony, which can compensate a spouse in some circumstances. Earning capacity is also one of the factors for alimony.

Income, Alimony and Child Support

Professional income can be complex. Compensation may include salary, distributions, production bonuses, retirement contributions and benefits paid by the practice. Income may also vary from year to year or depend on call schedules.

When the court considers alimony under § 20-3-130(C), it looks at factors such as each spouse’s current and anticipated earnings, earning potential, the standard of living during the marriage, and each spouse’s needs. South Carolina has no alimony formula. For child support, the court uses the state Child Support Guidelines, and income for self-employed parents can require a careful look at business records. See our pages on how alimony is decided and child support for self-employed parents.

A word of caution: income from the practice may be counted both as part of the practice’s value and as income for alimony. Attorneys sometimes call this “double dipping.” Whether and how courts adjust for it can be a contested point.

Retirement and Deferred Compensation

Professionals often have several retirement vehicles. Qualified plans such as 401(k)s and many pension plans are divided with a QDRO (qualified domestic relations order). Nonqualified deferred compensation plans often have different rules and may need a different approach, such as an offset with other assets. Government plans have their own order types. Ask for plan documents for every account and ask how each one can be divided. Our page on retirement accounts in divorce explains the basics.

Privacy and Patient or Client Confidentiality

Discovery in a divorce can reach practice records. Professionals owe duties of confidentiality to patients and clients, such as under HIPAA for health care providers. Practical ways to protect both sides include:

• Producing financial records with patient or client identifiers removed
• Asking the court for a confidentiality or protective order covering business records
• Limiting who can see sensitive documents, such as the appraiser and attorneys only
• Resolving issues by agreement to keep details out of public hearings

Professionals should also think about licensing board reporting obligations if any allegations arise during the case. Ask your attorney before responding to anything that could affect your license.

Schedules, Call and Custody

Long hours, on-call rotations and hospital schedules can make a standard custody schedule hard to follow. Courts consider each parent’s ability to care for the children under the best interest factors. A workable parenting plan for a professional might include:

• A schedule tied to the call rotation, released in advance
• Rules for swapping days when call changes
• Right of first refusal before using a sitter
• Clear transportation responsibilities

A spouse who has been the primary caregiver because of the other’s demanding job may raise that history. Both parents should be realistic about what they can commit to.

Practical Steps for Professionals and Their Spouses

1. Collect several years of personal and business tax returns, K-1s, financial statements and payroll records.
2. Gather partnership, operating and buy-sell agreements and any noncompete agreements.
3. List every retirement and deferred compensation plan with recent statements.
4. Do not change compensation, delay billing or move money between entities during the case. Courts may treat that as hiding assets.
5. Prepare an accurate financial declaration. South Carolina Family Court Rule 20 requires one in every case.
6. Talk with your attorney about whether a joint neutral appraiser or separate appraisers make sense.

For larger estates, also read our page on high net worth divorce, and return to the South Carolina Divorce Guide for the full process.

Frequently Asked Questions

Is my medical or dental practice marital property in South Carolina?

An interest in a practice acquired during the marriage is generally marital property. Even a practice started before marriage may have a marital part if its value increased because of the other spouse’s efforts.

Is personal goodwill divided in a South Carolina divorce?

South Carolina courts have distinguished personal goodwill, tied to the individual professional, from enterprise goodwill, tied to the business. Personal goodwill has generally been treated as not divisible.

Can my spouse get part of my medical degree?

Courts have generally not treated a degree or license as divisible property. A supporting spouse’s contributions may still be considered in dividing other property and in alimony.

How is a physician’s income figured for alimony?

There is no formula. The court looks at current and anticipated earnings, earning potential and the other § 20-3-130 factors. Distributions, bonuses and practice-paid benefits may all be reviewed.

Will my patients’ records be exposed in my divorce?

Courts can limit disclosure. Records can often be produced with identifiers removed and under a protective order. Ask your attorney before producing any practice records.

Sources

• S.C. Code Title 20, Chapter 3 (Divorce, Alimony and Property)
• IRS: Retirement plans and QDROs
• U.S. Department of Labor: QDRO guidance
• South Carolina Judicial Branch