South Carolina Supreme Court Makes New Law on Business Goodwill
In a first, state high court “cautiously” decides enterprise goodwill is marital property subject to equitable division and affirms that personal goodwill is not; court rejects claim that only professionals can develop personal goodwill in a business.
Court Nixes Double-Dip Claim Based on Accounts Receivable Treatment
Appeals court rejects claim that accounts receivable used in asset-based business valuation by wife’s expert are analogous to future income stream for purposes of arguing double dip in light of income determination for spousal support award.
Different Ways to Find No Claim to Enhanced Value of Nonmarital Asset
Appeals court says trial court erred in interpreting prenuptial agreement but reached correct result when it rejected wife’s claim to enhanced value of husband’s separate interest in car dealership by ruling appreciation in value was passive, not active.
BVR's Guide to Fair Value in Shareholder Dissent, Oppression, and Marital Dissolution
July 2011 978-1-935081-79-1 Hardcover, PDF (806 pages)
BVR (editor)
Business Valuation Resources, LLC
BVR Legal and Court Case Yearbook 2015
February 2015 978-1-62150-047-6 PDF (262 pages)
BVR (editor)
Business Valuation Resources, LLC
Business Valuation Update Yearbook 2015
February 2015 978-1-62150-048-3 PDF
BVR (editor)
Business Valuation Resources, LLC
Nieman v. Nieman
Appeals court says consideration of tax consequences related to owner-spouse’s business is “too speculative” because owner has no plan to sell in near future; trial court improperly assumed current tax rates and business interests would remain constant.
In re Marriage of Johnson
Appeals court strikes divorce ruling adopting income-based valuation of enterprise value of owner’s financial services business, valuation conflicts with data from similar transaction that occurred close to valuation date and involved owner-spouse.
Expert’s Application of Asset Approach ‘Defies Common Sense’
Court rejects income approach for valuing interest in business with low bar of entry and few repeat customers; court also says asset-based valuation following Section 179 tax treatment understates true value of the company and requires upward adjustment.
Court Declines to Attribute Commercial Goodwill to Solo Practice
Appeals court affirms trial court’s ruling finding that, without noncompete from owner-spouse, under FMV standard, financial advisor’s solo practice fetches only net book value of its tangible assets; most of value lies in owner-spouse’s personal goodwill ...
BVLaw
Business Valuation Update
Sternat v. Sternat
Appeals court says trial court’s decision to admit opinion of seasoned CPA expert who was not a credentialed business valuator was not error because valuation was a “non-issue” where evidence showed the indebted company was no longer a going concern.
Tennessee Appeals Court Straddles Goodwill Issue in Divorce
Appeals court finds enterprise goodwill is not a marital asset when the business is a sole proprietorship and orders trial court to produce a valuation of husband’s solo dental practice without “consideration of professional or enterprise goodwill.”
Husband's Roles in Company Negate Need for DLOC
Court affirms valuation of husband’s minority interest in business featuring zero DLOC where husband was key driving force behind business’s success and wielded influence and control; use of asset approach rendered double-dip theory inapplicable.
Gifford v Gifford
New York appellate court finds trial court’s spousal support determination violated double counting rule where expert valued husband’s solely owned engineering company based on an income approach and the business was a service business.
Moore v. Moore
In a first, state high court “cautiously” decides enterprise goodwill is marital property subject to equitable division and affirms that personal goodwill is not; court rejects claim that only professionals can develop personal goodwill in a business.
Court Infers Nature of Goodwill From Nature of Business
Appeals court affirms trial court’s valuation, which implicitly assigned goodwill to business, finding that since the company was not a professional practice it is likely that the company’s, rather than the owner spouse’s, reputation brings in business.
Settele v. Settele
Appeals court rejects claim that accounts receivable used in asset-based business valuation by wife’s expert are analogous to future income stream for purposes of arguing double dip in light of income determination for spousal support award.
Berg v. Young
Appeals court says trial court erred in interpreting prenuptial agreement but reached correct result when it rejected wife’s claim to enhanced value of husband’s separate interest in car dealership by ruling appreciation in value was passive, not active.
Court Validates Zero Goodwill for Naturopathic Practice
State high court affirms trial court’s determination that husband’s naturopathic practice had zero goodwill value based solely on husband’s testimony that a similar practice in the area failed to attract a buyer despite being on the market for a year.