Gill v. Gill
Earn-out payments related to sale of a marital asset were marital asset and subject to equitable distribution, Supreme Court’s majority says, even though value of the payments was uncertain as of the valuation date and the sale of the husband’s company took place after the valuation date.
Hear from nationally recognized experts at the AAML/BVR National Divorce Conference
Join your colleagues and top thought leaders at the highly anticipated AAML/BVR National Divorce Conference in Las Vegas, May 8-10, 2019. This one-of-a-kind event brings together leading matrimonial attorneys and financial experts to share their knowledge and critical insights on cutting-edge topics.
Alabama divorce court adopts result of calculation engagement
There is a split in the valuation community as to the merit of calculation engagements. As we recently reported, some valuators are adamantly opposed to doing them, whereas other appraisers believe that calculation engagements have a rightful place in their tool kit.
Agenda released for 2019 AAML/BVR National Divorce Conference
The agenda is now available for the National Divorce Conference to be presented by BVR and the American Academy of Matrimonial Lawyers (AAML) in Las Vegas, May 8-10, 2019.
Calculation engagement value holds up in Alabama divorce litigation
Many valuators are adamantly opposed to doing calculation engagements, as we recently reported.
Court Looks to Owner’s ‘Proportionate’ Share in Business to Quantify Appreciation in Value
In quantifying marital portion of appreciation of owner spouse’s separate property, trial court relies on owner’s “proportionate” share in company but also considers expert testimony as to third parties’ efforts and owner’s role in generating revenue; court rejects passive factor analysis.
Herbert v. Joubert
In quantifying marital portion of appreciation of owner spouse’s separate property, trial court relies on owner’s “proportionate” share in company but also considers expert testimony as to third parties’ efforts and owner’s role in generating revenue; court rejects passive factor analysis.
In re Marriage of Preston
In divorce case, appellate court upholds valuation based on opinion of husband’s expert using MUM method to separate total goodwill value into personal and enterprise components; court also upholds use of small marketability discount where owner spouse is the sole owner of the company.
Court Favors MUM Method for Goodwill Allocation in Illinois Divorce Case
In divorce case, appellate court upholds valuation based on opinion of husband’s expert using MUM method to separate total goodwill value into personal and enterprise components; court also upholds use of small marketability discount where owner spouse is the sole owner of the company.
Save the date! 2019 AAML/BVR National Divorce Conference
BVR has joined forces with the American Academy of Matrimonial Lawyers (AAML) to present the National Divorce Conference in Las Vegas May 8-10, 2019.
Arkansas court clarifies law on personal goodwill in a nonprofessional business
In divorce cases, Arkansas has followed the rule that enterprise goodwill is marital property but personal goodwill is not.
Appeals Court Validates Trial Court’s Reliance on Calculation of Value
Appeals court rejects claim that expert’s value determination pursuant to a calculation engagement rather than a valuation engagement was unreliable; trial court properly considered limitations inherent in a calculation engagement when crediting expert’s value estimate, appeals court says.
Rohling v. Rohling
Appeals court rejects claim that expert’s value determination pursuant to a calculation engagement rather than a valuation engagement was unreliable; trial court properly considered limitations inherent in a calculation engagement when crediting expert’s value estimate, appeals court says.
Hebert v. Cote
In appreciation in value case, court excludes nonowner spouse’s valuation testimony under Daubert, finding expert’s calculation of “minimum marital component” is not a methodology approved under the applicable SSVS for determining fair market value and also violated other SSVS requirements.
Court Rejects Appreciation in Value Calculation, Citing SSVS Violations
In appreciation in value case, court excludes nonowner spouse’s valuation testimony under Daubert, finding expert’s calculation of “minimum marital component” is not a methodology approved under the applicable SSVS for determining fair market value and also violated other SSVS requirements.
BVLaw Recent Case Additions
Case law matters. Check out these three divorce decisions, recently added to BVLaw, which arose in different states and which all dealt with the question of whether it was appropriate to discount the owner-spouse’s interest in a closely held business.
Wiegers v. Richards-Wiegers
Alaska high court finds trial court was not required to value husband’s shares in closely held company under the liquidation approach the company historically had used in buy-out situations; trial court’s “true asset” approach was based on credible expert testimony.
Trial Court’s ‘True Asset’ Valuation Aligns With Expert’s Testimony
Alaska high court finds trial court was not required to value husband’s shares in closely held company under the liquidation approach the company historically had used in buy-out situations; trial court’s “true asset” approach was based on credible expert testimony.
Letter to the Editor: Response to Article on Separating Active and Passive Appreciation in the Value of a Marital Asset
The author says there are flaws in Dr. Ashok Abbott’s approach to segregating passive from active increases in the value of a marital asset—and he presents an alternate approach.
Tennessee appeals court allows slight DLOM in divorce case
Valuators working on divorce cases in Tennessee know that the jurisprudence on the use of the marketability discount has been nebulous.
Atherton v. Atherton
Arkansas Court of Appeals rejects claim by owner of nonprofessional business that any value in business represents personal goodwill attributable to him; court says concept of personal goodwill has not been extended to nonprofessional business “such as the one involved here.”
Arkansas Court Clarifies What Sort of Businesses Can Have Personal Goodwill
Arkansas Court of Appeals rejects claim by owner of nonprofessional business that any value in business represents personal goodwill attributable to him; court says concept of personal goodwill has not been extended to nonprofessional business “such as the one involved here.”
Ohio Appeals Court Approves Use of Fair Value Standard in Valuing Farm Entities
Appeals court upholds valuation of minority interest in farm entities based on fair value standard of value; court notes prevailing expert specifically referenced buy-sell agreements that did not contemplate use of discounts in valuing exiting member’s partial interest.
Tate v. Tate
Appeals court upholds valuation of minority interest in farm entities based on fair value standard of value; court notes prevailing expert specifically referenced buy-sell agreements that did not contemplate use of discounts in valuing exiting member’s partial interest.
In re Marriage of Cooksey (Cooksey v. Cooksey)
In Florida divorce involving sole proprietorship, court rejects separate valuation of various intangible assets and credits owner expert’s valuation, using “with/without” method to quantify personal goodwill; court considers tax consequences even where sale of business is not imminent.