Rhode Island Supreme Court Affirms Value of Interest in Medical Practice Per Shareholder Agreement and Equitable Distribution of Assets

BVLaw
Court Case Digests
January 24, 2024
8071 Medical Laboratories
621512 Diagnostic Imaging Centers
marital dissolution/divorce
divorce, fair market value (FMV), marital asset, marital estate, shareholder agreement, alimony

Cronan v. Cronan
2024 R.I. LEXIS 12
US
State Court
Rhode Island
Supreme Court
John E. Barrett Jr., CPA; Jane McAuliffe, CDFA; Paul St. Onge, CPA
Suttell, Goldberg, Robinson, Lynch Prata, and Long

Summary

This case concerned an appeal of a family court magistrate’s decision as to the value of marital assets and the distribution thereof and denial of alimony to the wife. The plaintiff, the husband, is a physician shareholder in a medical imaging practice. The practice had a shareholder agreement that provided for the price to buy into and sell out of the practice. The wife’s expert determined the value of the husband’s shares under the fair market value standard but the trial court and supreme court went with the agreement value.

See Also

Cronan v. Cronan

This case concerned an appeal of a family court magistrate’s decision as to the value of marital assets and the distribution thereof and denial of alimony to the wife. The plaintiff, the husband, is a physician shareholder in a medical imaging practice. The practice had a shareholder agreement that provided for the price to buy into and sell out of the practice. The wife’s expert determined the value of the husband’s shares under the fair market value standard but the trial court and supreme court went with the agreement value.

This article also appears in:
Business Valuation UpdateVol. 30 No. 4