Financial issues in divorce: additional opportunities to make arguments for the right case

BVWireIssue #98-3
November 17, 2010

Last week at the AICPA National BV conference, Kalman Barson (Barson Group) advised the audience to consider “concepts that go far beyond pushing a pencil or keying in data” in divorce cases.  He suggested practitioners consider the following questions when determining a value:

  • How do improper actions impact value?  What if those improper actions are common within that specific business or industry?
  • Should the existence of unreported income create a difference in value?  
  • Is there logic that a PTE is inherently worth more than a C corp?
  • The public markets dropped 40% in 2008 –were private companies impacted similarly?
  • Are either age or heath relevant to value? To what extent does relative power structure of the company and personal contribution make a difference in the value of the interest?

Look for Barson’s insight to these questions in an upcoming issue of Business Valuation Update.

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