Kwak v. Bozarth

BVLaw
Full Text of Court Cases
April 7, 2023
8021 Offices and Clinics of Dentists
621210 Offices of Dentists
marital dissolution/divorce
goodwill, divorce, normalization, capitalization of earnings, cash flow, earnings, salary

Kwak v. Bozarth
2023 Mass. App. Unpub. LEXIS 179; 102 Mass. App. Ct. 1116; 2023 WL 2817904
US
State Court
Massachusetts
Court of Appeals
David E. Consigli, Jr., CPA/ABV
Sullivan, Massing, Hershfang

Summary

The Appeals Court of Massachusetts affirmed the trial court determination of the value of the wife’s dental practice. A large amount and growth of the revenues was from prosthodontics. The wife provided her own value without expert testimony, and the trial court found the methodology not appropriate. The husband’s expert determined the value based on a capitalization of earnings method, with adjustments for compensation to the owner and a 21% discount for goodwill. The appeals court affirmed the decision of the trial court, primarily accepting the valuation of the husband’s expert.
Kwak v. Bozarth
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See Also

Massachusetts Trial Court Rejects Wife’s Nonexpert Value of Her Dental Practice—Appeals Court Affirms

The Appeals Court of Massachusetts affirmed the trial court determination of the value of the wife’s dental practice. A large amount and growth of the revenues was from prosthodontics. The wife provided her own value without expert testimony, and the trial court found the methodology not appropriate. The husband’s expert determined the value based on a capitalization of earnings method, with adjustments for compensation to the owner and a 21% discount for goodwill. The appeals court affirmed the decision of the trial court, primarily accepting the valuation of the husband’s expert.