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.
Court Credits Goodwill Determination Based on ‘With/Without’ Method
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.
Courts Find Minority Discount Unwarranted Under Facts of Case
In valuing owner-spouse’s minority interest in LLC, trial court “would have been well within its discretion to apply a minority discount,” appeals court says, but it was not error for trial court to reject a discount based on certain questionable actions related to the owner’s interest.
Cobane v. Cobane
In valuing owner-spouse’s minority interest in LLC, trial court “would have been well within its discretion to apply a minority discount,” appeals court says, but it was not error for trial court to reject a discount based on certain questionable actions related to the owner’s interest.
Arizona Court Says Owner’s Goodwill in Restaurants Represents Community Asset
Appeals court affirms trial court’s decision to give wife portion of value of goodwill in two restaurants husband set up with new partner during separation, where restaurants carried husband’s name and featured recipes he had developed during the marriage; goodwill is a community asset.
Jimenez v. Jimenez
Appeals court affirms trial court’s decision to give wife portion of value of goodwill in two restaurants husband set up with new partner during separation, where restaurants carried husband’s name and featured recipes he had developed during the marriage; goodwill is a community asset.
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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.
Goodman v. Goodman
Appeals court upholds trial court’s finding of enterprise goodwill, finding husband’s habit of periodically placing business assets in his children’s names as well as wife’s significant involvement in the business indicate business was “transferable.”
Owner’s Problematic Business Practices Support Finding of Enterprise Goodwill
Appeals court upholds trial court’s finding of enterprise goodwill, finding husband’s habit of periodically placing business assets in his children’s names as well as wife’s significant involvement in the business indicate business was “transferable.”
Telfer v. Telfer
In context of determining appreciation in value, appeals court says trial court did not err when it applied DLOM in valuing partial interests in businesses representing wife’s separate property; DLOM use is within trial court’s discretion and depends on facts of the case.
Tennessee Appeals Court Defers to Trial Court on DLOM Use in Divorce
In context of determining appreciation in value, appeals court says trial court did not err when it applied DLOM in valuing partial interests in businesses representing wife’s separate property; DLOM use is within trial court’s discretion and depends on facts of the case.
Business Valuation Update Yearbook, 2018 Edition
February 2018 PDF
BVR (editor)
Business Valuation Resources, LLC
Michigan Court Explains How to Handle Retained Earnings in Divorce Cases
In deciding whether, in divorce, retained earnings in a closely held company that is separate property are includible in marital estate, appeals court creates presumption against inclusion and requires trial court to perform totality of circumstances review.
Jensen v. Jensen
In deciding whether, in divorce, retained earnings in a closely held company that is separate property are includible in marital estate, appeals court creates presumption against inclusion and requires trial court to perform totality of circumstances review.
Montana Supreme Court Remands for Failure to Assess Tax Implications
High court says trial court erred when it failed to consider tax implications where its final order appears to make sale of family ranch a necessity; evidence suggests there are no other assets with which to buy wife’s shares of ranch corporation at FMV.
Tax Effects Are Relevant to Equitable Distribution Analysis
Reviewing court says in valuing owner spouse’s auto transport business and performing equitable distribution analysis, trial court erred when it refused to consider tax effects of potential sale of business before assigning asset to owner; case remanded.
Math and Logic Problems Mar Court’s Valuation and Division of Assets
Appeals court finds incongruities in trial court’s unreported cash income and profit rate inputs make court’s valuation of timber business meaningless; further, trial court failed to explain reason for equalization payment and arrived at incorrect amount.
Stocker v. Stocker
Trial court did not err in adopting income-based valuation offered by husband’s expert; appeals court calls husband’s attack on his own expert “counterintuitive” where expert explained the value of the company was in its cash flow rather than its assets.
Court Rebuffs Litigant’s Attack on Own Expert’s Income-Based Valuation
Trial court did not err in adopting income-based valuation offered by husband’s expert; appeals court calls husband’s attack on his own expert “counterintuitive” where expert explained the value of the company was in its cash flow rather than its assets.
Nebraska Supreme Court Adopts Majority View on Appreciation
State Supreme Court adopts active appreciation rule, aligning itself with majority of jurisdiction that finds appreciation of nonmarital asset is marital property to the extent marital efforts caused it, i.e., the owner or nonowner spouse or both.
New Jersey Court’s Inadequate Goodwill Ruling Begets Rebuke and Remand
In a case about lawyer’s equity partner interest in a large firm, appellate court finds prior ruling was grossly deficient; expert testimony suggested the owner spouse’s compensation matched his earning capacity and there was no additional goodwill compon ...
Vedros v. Vedros
Court says discounting for lack of marketability of minority interest in home healthcare agency, operating as an S corporation, is appropriate where LLC agreement included transfer restrictions and partners were not planning to buy out owner spouse.