Trial Court’s Decision of Value of Business Based on a Going Concern Is Reversed and Remanded

BVLaw
Court Case Digests
April 5, 2022
8099 Health and Allied Services, NEC
621999 All Other Miscellaneous Ambulatory Health Care Services
marital dissolution/divorce
business valuation, capitalization of earnings, reliability, owner-spouse, future income

In Re Riddle
2022 Ariz. App. Unpub. LEXIS 304
United States
State Court
Arizona
Court of Appeals
Samuel A. Thumma, Maria Elena Cruz, Michael J. Brown

Summary

The appeal in this case dealt with, among other issues, the trial court’s decision to adopt the husband’s expert’s value that was based on a capitalization of earnings based on expected future income. The appellate court noted that the evidence from the trial showed that the business received no revenue after the wife sold her interest to a third party, and there was no evidence that similar earnings would occur in the future. The trial court’s determination of value was vacated and remanded.

See Also

In Re Riddle

The appeal in this case dealt with, among other issues, the trial court’s decision to adopt the husband’s expert’s value that was based on a capitalization of earnings based on expected future income. The appellate court noted that the evidence from the trial showed that the business received no revenue after the wife sold her interest to a third party, and there was no evidence that similar earnings would occur in the future. The trial court’s determination of value was vacated and remanded.