A.C. v. J.O.
In divorce case, New York trial court prefers excess earnings over price-to-revenue method to value wife’s dental practice, because the former accounts for the business’s lack of tangible assets—a fact specific to professional offices in New York where re ...
Court Reproves Spouse’s Efforts to Lower Value of Community Business
California appellate court affirms trial court’s rejection of husband’s motion to value the community business at separation rather than at trial; the latter is the presumed valuation date under state law and the husband’s request was not “good cause,” bu ...
Court Affirms FMV Determination for S Corp Medical Practice
Appellate court affirms lower court’s Fair Market Value (FMV) determination of husband’s S Corp. medical practice, which incorporates goodwill value the wife’s expert calculated based on the Goodwill Registry.
Intrinsic Value Review Precludes Inclusion of Fractional Discounts
The appellate court finds that, performing the requisite intrinsic value review, the circuit court properly declined to include in its analysis any discounts the husband’s expert proposed to account for his fractional interest in companies owning hotels ...
Schmidt v. Schmidt
Appeals court overturns valuation, finding trial court mistakenly accepted valuation that assumed and required noncompete from owner spouse without expert’s calculating value assuming no noncompete; valuation still includes personal goodwill component that must be excised, appeals court says.
Goldfarb v. Yelton
Appellate court affirms trial court’s decision to apportion most of the stock sale proceeds the husband reaped during marriage in connection with a company he set up before marriage to the community under Pereira, finding that during marriage, he became t ...
McCulloch v. McCulloch
Trial court abused its discretion when it assigned to wife stock in closely held company that made her a minority shareholder and when it failed to value the asset at issue; because the in-kind distribution left her with illiquid assets and no control ove ...
Valuation of Family Business Survives Expert’s Deviation From Industry Standards
Court of Appeals rejects husband’s claim that trial court erred in valuing interest in family business based on wife’s expert’s computation, which deviated from industry standards and included discounts (DLOM, DLOC, personal goodwill) based on expert’s ag ...
Excess Earnings Method ‘Better Isolates’ Business Goodwill
Court of Appeals affirms use of excess earnings method to calculate business goodwill in husband’s law firm interest; no controlling authority exists to mandate that trial court limit its use to cases in which pertinent financial data is unavailable, cour ...
Unclear Valuation of Family Business Interests Requires Remand
Appellate court remands for trial court’s express valuation of husband’s business interests and for explanation of its unequal distribution, awarding all of the business interests to husband.
Interdisciplinary Appraisal Cannot Prevent Incomplete Valuation
In valuing husband’s partnership interest in rental-storage business, trial court could consider income-capitalization or cost approach and adopt valuation that included non-controlling (minority) interest discount of 33% based on real estate appraiser’s ...
Sharp v. Sharp
In using the capitalization of earnings method to value husband’s medical practice, the wife’s expert did not improperly include personal goodwill, the appellate court finds; the valuation rested on actual earnings with some adjustment for reasonable comp ...
Patel v. Patel
The appellate court finds that, performing the requisite intrinsic value review, the circuit court properly declined to include in its analysis any discounts the husband’s expert proposed to account for his fractional interest in companies owning hotels ...
Gentile v. Gentile
Appellate court affirms lower court’s Fair Market Value (FMV) determination of husband’s S corp. medical practice, which incorporates goodwill value the wife’s expert calculated based on the Goodwill Registry.
Charles v. Charles
California appellate court affirms trial court’s rejection of husband’s motion to value the community business at separation rather than at trial; the latter is the presumed valuation date under state law and the husband’s request was not “good cause,” bu ...
Court Affirms Excess Earnings Method for Goodwill Calculation
State Court of Appeals affirms expert’s use of excess earnings method to determine value of husband’s interest in large medical practice finding the calculation properly separated personal from enterprise goodwill.
Court’s Discount Rates Don’t Overvalue Business Interests
Trial court did not overvalue husband’s interests in various businesses since it applied a DLOC whenever the husband did not have a 100% interest in the company and a DLOM that was consistent with expert testimony, state Court of Appeals finds.
Court Affirms Award for Excluding Value of Farm From Marital Estate
State Court of Appeals values husband’s interest in a family agricultural business at $1 million, including a discount for lack of control, and finds lower court’s $250,000 Grace award to spouse to compensate for exclusion of the value of the business fro ...
Buyout Agreement Irrelevant to Valuation of Spouse’s Business Interest
State Supreme Court finds trial court erred in valuing husband’s business interest based on buy-out agreement the parties ignored; on remand, valuation must meet statutory requirement of a fair and just division.
Russell v. Russell
Court of Appeals rejects husband’s claim that trial court erred in valuing interest in family business based on wife’s expert’s computation, which deviated from industry standards and included discounts (DLOM, DLOC, personal goodwill) based on expert’s ag ...
Wright v. Wright
Court of Appeals affirms use of excess earnings method to calculate business goodwill in husband’s law firm interest; no controlling authority exists to mandate that trial court limit its use to cases in which pertinent financial data is unavailable, cour ...
