More Thorough Expert Persuades Court in Valuing CPA Firm
Court affirms reliance on income approach to value solo CPA practice, including distinction between personal and enterprise goodwill, but rejects trial court’s finding that 25% of the firm was the husband’s separate property, based on his demonstrated int ...
Should Court Consider Tax Burden of Awarding Business to the Owner?
Should Court Consider Tax Burden of Awarding Business to the Owner?
Goodwill Value of Closely Held Company Assumes a Noncompete
North Carolina Court of Appeals affirms $30,000 goodwill value for closely held IT firm based on a multiple of earnings approach and assumption of a non-compete in a willing buyer/willing seller transaction.
Taylor v. Taylor
North Carolina court of appeals affirms application of discount for lack of marketability to value of marital business (hospital pharmacy), as substantiated by the evidence.
Kowalska-Davis v. Davis
Massachusetts Court of Appeals acknowledge trend in that state to find an equitable solution to the problem of the double dip in divorce, involving making separate findings regarding the income of the owner-spouse from the business and the income/assets o ...
In re Marriage of Gelman
A medical partnership’s exclusive contract to provide anesthesiology services to a hospital is an intangible asset, but since buy-sell agreement limits wife’s interest to $1.00, the court finds she has no ownership interest in the business and the contrac ...
Spady v. Spady
Appellate court holds that valuation date must bear a “rational relationship” to the assets being valued, and confirms no value for the auto dealership in this case, based on standard appraisal practice to round negative values to zero.
Gaskill v. Robbins (III)
Court of Appeals confirms trial court’s reliance on a valuation performed closer to date of petition (rather than date of decree), finding a variety of factors in support, including spouse’s dissipation of funds from the sole proprietorship.
Confusion Over ‘Double Dip’ Leads to Triple Appeal (Heller II)
Court of Appeals determines, based on the nature of the husband’s interest in an S corporation, that the state marital dissolution statutes prohibit the double dip; i.e., the trial court awarding the wife an interest in the business and then awarding spou ...
Confusion Over ‘Double Dip’ Leads to Triple Appeal (Heller III)
Confusion Over ‘Double Dip’ Leads to Triple Appeal ...
Dental Practice Does Not Have Goodwill
The appellate court affirmed $42,000 valuation of the wife’s solo dental practice and rejected approach by the husband’s expert, which included “goodwill and other irrelevant factors.”
Court Finds No Appreciable Value in Husband’s Law Firm
Court finds no appreciable value in husband’s law practice, reversing trial court’s improper characterization of cash account as asset instead of income.
Court Include Personal Goodwill Value When Neither Expert Included Its Value
Trial court did not err in valuing dental practice at an amount less than the husband’s prior buy-in value; and did not improperly include personal goodwill value when neither expert included its value ...
Discounts in Estate Tax Valuation Do Not Apply in Divorce
Appraisal used in estate tax valuation, which included substantial discounts for lack of marketability and control, were inappropriate for use ten years later in divorce.
Confusion Over ‘Double Dip’ Leads to Triple Appeal (Heller I)
Court of Appeals determines, based on the nature of the husband’s interest in an S corporation, that the state marital dissolution statutes prohibit the double dip; i.e., the trial court awarding the wife an interest in the business and then awarding spou ...
In re Marriage of Restaino
Court of Appeals reverses the trial court’s finding that pay-outs under a law firm dissolution agreement represented income to the husband rather than his equity share in a community asset, to which the wife could claim a portion.
Caveney v. Caveney
Massachusetts Court of Appeals confirms that the fair value standard in divorce cases precludes application of any discount, either for lack of marketability or lack of control, for any closely held company, even highly restricted shares in family owned b ...
In re Marriage of Kingery
In valuing the husband’s 25% interest in a law firm, the trial court erroneously accepted a valuation that included a “purchase acquisition cost” or “goodwill cost” derived from a buy-out of a former partner.
Family LLC in Divorce: Error to Value Only Underlying Property
Trial court errs by valuing the husband’s minority interest in a family held limited liability corporation by reference to the underlying real property, when there was no evidence that the husband could access the property or its income.
Court Upholds Use of Business Reference Guide in Valuing PT Practice
Appellate court upholds Business Reference Guide rules of thumb for valuing a physical therapy practice at 1.0 times gross income.
In re Marriage of Baker
Court of Appeals affirms finding that buy-sell agreement limits spouse’s interest in medical clinic to $1,000.
Swaney v. Swaney
North Carolina Court of Appeals affirms $30,000 goodwill value for closely held IT firm based on a multiple of earnings approach and assumption of a non-compete in a willing buyer/willing seller transaction.
In re Marriage of Hanscam
Court affirms reliance on income approach to value solo CPA practice, including distinction between personal and enterprise goodwill, but rejects trial court’s finding that 25% of the firm was the husband’s separate property, based on his demonstrated int ...