Wood v. Wood
Appellate court rejects calculation of value of closely held business under buy-sell agreement that did use proper valuation date or standard of value (FMV).
Court Rejects ‘One Size Fits All’ Rule for Valuing Stock Options
Washington State Supreme Court rejects absolute rule for valuing converted employment stock options in divorce, deferring to trial courts’ broad authority to assess expert valuation of the options, including its reference to the tort framework of measurin ...
Atypical Life Insurance Firm Proves a ‘Sticky Wicket’ for Experts, Court
California approves excess earnings and “formula” approach to valuing atypical life insurance firm, based on industry compensation and revenue data.
In re Marriage of Rodenback
Appellate court disavows day-of-trial valuation by expert that used the husband’s “off the cuff” forecasts, preferring value based on historical earnings, without consideration of the tax burden the husband would have to bear in making the equalization pa ...
Schuman v. Schuman
State high court says appeals court erred in classifying wife’s stock awards as separate property based solely on vesting; stock awards are form of deferred compensation, like retirement benefits, and are acquired “when they are earned, and not at the time of receipt, vesting or exercise.”
In re Marriage of Ferkel
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."
Always Verify Client-Provided Financial Information
Appellate court affirms trial court finding that expert who relied on “estimates” of asset value, provided by the husband with an unreliable memory, was not credible.
Tax and Accounting Expertise May Not Be Enough
Trial court did not err by excluding proffered appraisal expert; even though he had 30 years of accounting and real estate experience, he lacked a college degree and had never been qualified as a BV expert.
Trial Court Can’t Just 'Split the Difference'
Appellate court reverses trial court’s valuation of the parties’ liquor business, finding that it apparently “split the difference” between the parties’ valuations without sufficient evidence in the record to support this median value.
Industry Evidence Can Provide Basis for Substantial Discount
Appellate court confirms trial court’s discounting of hog confinement facilities based on testimony of industry expert regarding “troubled” state of the industry; and further, it appropriately excluded considerations of tax consequences.
Short v. Short
Appraisal used in estate tax valuation, which included substantial discounts for lack of marketability and control, were inappropriate for use 10 years later in divorce.
Heller v. Heller (III)
Court of Appeals ratifies its prior decisions concerning the prohibition against the double-dip in this case, but reverses the trial court’s support award as unreasonable and unsupported use of his business profits.
Also of Note: Divorce Cases, Wright v. Wright
Trial court correctly applies 20% “attrition discount” to value of husband’s accounting firm when there was credible, non-speculative evidence that the firm would lose customers in the future due to natural attrition.
Also of Note: Divorce Cases, K.B.R. v. E.P.R
Trial court accepts value of lending corporation based on “weighted average collectability” of outstanding loans, adjusted downward for economic uncertainties and default status of loans.
Court’s Decision Supported by 'Competent, Credible' Expert Evidence
Trial court did not err by accepting expert value that compared wife’s interest in chain of local sandwich stores to those found in mall and airport food courts; and by rejecting expert who valued it based on national franchise comparables.
Court Finds ‘Key Man’ Discount Duplicative
Appellate court finds “key man” discount duplicative when trial court already adopted a value that accounted for the business’s dependency on its sole owner.
Court Adds Undeposited Check to Value of Business
Court finds that net asset value of healthcare software company includes un-deposited earnings, despite husband’s contention that the check was for future services.
Wisconsin High Court Says Majority Rule on Goodwill Is ‘Mistaken’
Wisconsin Supreme Court upholds the standard that all saleable goodwill in a professional practice, as evidenced by a non-competition agreement, is a divisible marital asset; and that it is not “double-counting” to base a maintenance award on the income p ...
In re Marriage of Bauer
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 Jackson
Court finds no appreciable value in husband's law practice, reversing trial court's improper characterization of cash account as asset instead of income.
Farmer v. Farmer
Washington State Supreme Court rejects absolute rule for valuing converted employment stock options in divorce, deferring to trial courts’ broad authority to assess expert valuation of the options, including its reference to the tort framework of measurin ...