Trajectory of Owner’s Investment Management Business Raises Characterization and Valuation Issues
A complex divorce case in front of the Idaho Supreme Court featuring an investment management business that the husband had set up before and sold during the marriage raised noteworthy issues about the nature of the business and the characterization and valuation of its various components (book of business vs. owner’s skills). A related flashpoint was whether the nonowner spouse was entitled to any appreciation (enhancement) in the value of the business that occurred ...
BV expert shows how to produce a viable valuation with little financial data available
BV expertise matters, as a recent Florida divorce case shows in which the parties’ experts faced the challenge of valuing a company that once operated abroad but was sold a decade before the divorce trial.
Perser v. Perser
Court upholds award to nonowner spouse related to value of husband’s medical practice where husband bought practice prior to marriage and was sole owner; court notes there was goodwill attributable to the business and finds other factors indicate business had assets that were marital property.
Factors Other Than Goodwill Support Award to Nonowner Spouse Related to Owner’s Medical Practice
Court upholds award to nonowner spouse related to value of husband’s medical practice where husband bought practice prior to marriage and was sole owner; court notes there was goodwill attributable to the business and finds other factors indicate business had assets that were marital property.
Calculation engagements receive mixed reactions from courts
If the appraisal profession is conflicted over the validity of calculation engagements, so are courts, as a brief review of court decisions on the BVLaw platform shows.
Nonowner spouse obtains discovery of valuation-related info from owner spouse’s medical practice
A Florida divorce case prompted an important discovery ruling from the appellate court as to a nonowner spouse’s right to access documents and information regarding the owner spouse’s interest in a large medical practice.
Attorneys and Valuers Strengthen Ties at AAML/BVR Divorce Confab
The Tax Cuts and Jobs Act, expert witnessing, rigged valuations, and other interesting topics were presented at the National Divorce Conference (in Las Vegas May 8-10) co-sponsored by the American Academy of Matrimonial Lawyers (AAML) and Business Valuation Resources (BVR). Here’s a recap of some important takeaways.
In Florida divorce, expert’s ‘with-and-without’ valuation withstands appeal
In a nasty Florida divorce case, an appellate court recently upheld the trial court’s valuation findings concerning the husband’s 50% interest in a successful company that operates in the waste disposal industry.
Avoiding Ethics Violations When Working on Divorce (or Other) Cases
At the recent AAML/BVR divorce conference, held May 8-10 in Las Vegas, one of the sessions that best conveyed the advantages of an interdisciplinary discussion was on ethics. The topic was “Ethics Violations: How to Avoid the Letter No One Wants to Receive,” and the speakers were Marie Ebersbacher (CBIZ MHM LLC), an appraiser and financial forensics expert, and Lawrence Moskowitz (Perry, Johnson, Anderson, Miller & Moskowitz LLP), a family law attorney.
Coverture Fraction Method Best BV Approach in Face of Lack of Financial Data
In divorce case, appellate court affirms use of coverture fraction method to determine marital value of husband’s firm on the valuation date (1995), where company operated abroad, “normal” financial documents were not available, and interest was sold a decade before the divorce trial.
Kvinta v. Kvinta
In divorce case, appellate court affirms use of coverture fraction method to determine marital value of husband’s firm on the valuation date (1995), where company operated abroad, “normal” financial documents were not available, and interest was sold a decade before the divorce trial.
Connecticut court’s impermissible double dipping triggers remand
In a noteworthy decision, a Connecticut appellate court recently found the trial court double dipped when it divided the marital assets and calculated spousal support.
Appreciation in Liquor Company’s Value Represents Marital Property, Appeals Court Finds
Appeals court upholds ruling that appreciation in value of husband’s interest in family liquor business is marital asset; trial court carefully analyzed husband’s role in company to find he “substantially contributed” to the increase and husband stipulated to wife’s substantial contribution.
Hall v. Hall
In discovery dispute, appeals court says trial court’s protective order in favor of medical practice is too broad; nonowner spouse may obtain information shedding light on value of owner spouse’s ownership interest; operating agreement requiring use of book value may not be controlling here.
Medical Practice Must Produce Information Bearing on Spouse’s Ownership Value
In discovery dispute, appeals court says trial court’s protective order in favor of medical practice is too broad; nonowner spouse may obtain information shedding light on value of owner spouse’s ownership interest; operating agreement requiring use of book value may not be controlling here.
Burchfield v. Burchfield
In valuing husband’s law firm partnership interest, court finds undistributed earnings, even though allocated to husband before separation, are not marital property because money was based on firm’s anticipated net profits; money was not earned during marriage but after parties’ separation.
Court Explains Treatment of Undistributed Earnings in Valuing Law Firm Partnership Interest
In valuing husband’s law firm partnership interest, court finds undistributed earnings, even though allocated to husband before separation, are not marital property because money was based on firm’s anticipated net profits; money was not earned during marriage but after parties’ separation.
Divorce conference speakers share valuation and legal practice tips
In “25 Hot Tips in 75 Minutes,” one of the most popular panels at the recent AAML/BVR National Divorce Conference in Las Vegas, attorneys and valuation experts shared tips on how to succeed in litigation as well as in managing client relations and workflow.
Oudheusden v. Oudheusden (I)
Appellate court remands because of trial court’s impermissible double dipping, where trial court awarded wife half of the fair market value of husband’s two solely owned businesses, which represented husband’s sole income stream, and based spousal support on annual income generated by businesses.
Connecticut Appellate Court Remands Because of Impermissible Double Dipping
Appellate court remands because of trial court’s impermissible double dipping, where trial court awarded wife half of the fair market value of husband’s two solely owned businesses, which represented husband’s sole income stream, and based spousal support on annual income generated by businesses.
10 key takeaways from the 2019 AAML/BVR National Divorce Conference in Las Vegas
Hundreds of family law attorneys and financial experts converged last week in Las Vegas for the first event the American Academy of Matrimonial Lawyers (AAML) and Business Valuation Resources (BVR) co-sponsored. Attorneys along with valuation, forensics, wealth and other financial experts co-presented the sessions, which gave invaluable perspectives on the topics.
Takeaways from the inaugural AAML/BVR divorce confab
Family law attorneys and financial experts converged last week in Las Vegas for the first event co-sponsored by the American Academy of Matrimonial Lawyers (AAML) and Business Valuation Resources (BVR).
Appreciation analysis reveals owner’s substantial contribution to company’s success
Appreciation of separate property is a knotty issue whose analysis can be challenging for attorneys and valuators, but a recent Tennessee appeals court decision helps practitioners understand the framework a court may use to decide whether the nonowner spouse has a claim to the increase in value.
Webcast this week of the National Divorce Conference
Couldn’t make it to Vegas for this week’s AAML/BVR National Divorce Conference May 8-10?
Beware of attack on your transactions method
An article in the Spring 2019 issue of Family Lawyer magazine shows how a lawyer can attack a valuation expert’s use of the guideline company transactions method for a small- to medium-size firm.