Lack of evidence prompts court to ignore tax impacts when valuing partnership interest; ‘family discount’ for transfer of corporate shares also ignored

Business Valuation UpdateVol. 11 No. 4
Legal and Court Case Update
April 2005
0191 General Farms, Primarily Crop
111998 All Other Miscellaneous Crop Farming
marital dissolution/divorce

Zwerk v. Zwerk
2005 Mich. App. LEXIS 273
February 8, 2005
State Court
Court of Appeals
Per Curiam


Husband owned a 27.5 percent interest in a partnership that was sold as part of a succession transaction and for which he received two notes, the face value of which totaled $469,156—which the trial court found constituted an inflated price.

See Also

Zwerk v. Zwerk

In this marital dissolution action, the court ruled that discounts given to family members that had no relation to marketability should be ignored when valuing corporate entities, and that the tax effects on a partnership interest should also be ignored.