News Tag: marital estate


Can a nonprofessional business have personal goodwill? Arkansas court explains

Arkansas is one of the many states that differentiate between enterprise goodwill and personal goodwill. The former is marital property and divisible at divorce; the latter is not. A question that has come up in recent years is whether the owner of a nonprofessional business can claim personal goodwill whose value is excludable from the marital estate. Read more >>

Tenn. Appeals Court says DLOM in divorce appropriate under facts of case

A recent Tennessee appeals court decision found that the trial court presiding over a drawn-out divorce had discretion to apply a marketability discount when it valued the owner-spouse’s interest in two companies in 2016. Read more >>

Michigan court explains treatment of S corp’s retained earnings in divorce

The overarching issue in a recent Michigan divorce case was appreciation. Did the nonowner spouse (wife) have a right to a portion of the increase in value of her husband’s separate property, an S corporation? A related issue, and one that posed a question of first impression in Michigan, was how to treat the company’s retained earnings. Read more >>

Tenn. appeals court muddies the waters regarding use of DLOM in divorce valuation

So much for clarity. A recent Tennessee appeals court decision hinged on the issue of whether a marketability discount was appropriate in the valuation of the husband’s interests in three real estate development partnerships. In reviewing the trial court’s analysis, the appeals court suggested that the lower court misunderstood the principle behind DLOM but ultimately upheld the lower court’s findings. The resulting decision leaves valuators in a pickle as to when to apply the discount and at what rate. Read more >>

Florida court resists call for bright-line rule on active-passive appreciation

In this age of entrepreneurship, valuators working on divorce cases often run into the issue of active and passive appreciation. But this issue not only comes up in the context of one spouse's ownership of a business that qualifies as separate property, as a recent Florida appeals court ruling shows. The case involved the husband's separate ownership of stock in a company for which he worked and the stock's substantial appreciation in value during the marriage. The wife asked for a rule "that all appreciation of the stock of a company for which a spouse works is a marital asset." Read more >>

Key ruling on enterprise goodwill from South Carolina Supreme Court

Alaska High Court Affirms Zero Goodwill for Naturopathic Practice

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