New toolkit in development for active/passive appreciation

BVWireIssue #231-3
December 15, 2021

marital dissolution/divorce
divorce valuation, marital dissolution, marital estate

During a BVR webinar, Ashok Abbott (West Virginia University) discussed his recent peer-reviewed paper that explains his methodology for separating active from passive appreciation of business assets in a divorce context. His methodology involves identifying significant economic environmental factors (market forces) in an industry and measuring their relative contribution to growth in revenues, which requires statistical analysis. An audience member made the comment: “BVR should develop an automated solution for this.” A good idea! So BVR and Dr. Abbott are developing such a solution that will include a calculator, economic data (on a national level), and a user’s guide. The guide will include a plain-language explanation of the methodology, which will help the user explain it to the client or trier of fact (a major challenge when using a model of this type). A beta version is expected during the first quarter of 2022, so stay tuned!
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