Kapadia v. Kapadia
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.
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.
In re Marriage of Price and Turkanis
Court approves use of comparable sales data in valuing high-tech startup company, even though comparable transactions took place within one year after the valuation date.
Joint Experts in Divorce: When Should a Spouse Seek a Second Opinion?
Court confirms appropriateness of applying a 50% marketability discount to the post-marital value of a steel business but not to its premarital valuation, citing the changes in the steel industry and company-specific factors.
Broker and BV Expert Battle Goodwill Value of Dental Practice in Divorce
Divorce court confirms value of dental practice, excluding goodwill, is midway between a broker’s value and a BV expert’s.
Mississippi Gets Two Chances to Value Business Goodwill
Miss. appellate court confirms “bright line” rule that all goodwill, whether enterprise or personal, of a professional or retail firm, is excluded from the valuation of a business in divorce.
Tax Consequences of Sale Turn on Specific State Law and Facts of the Case
Nebraska appellate court precludes discounts for embedded capital gains tax under the asset approach, confirms tax “adjustments” to the cash flows of a business under the income approach, and affirms that applications of minority and marketability discoun ...
Palmerino v. Palmerino
Massachusetts court precludes discounts in valuing marital business in divorce, and says that while income approach is preferred, net asset value may be appropriate in the absence of determinable market value.
Adams v. Adams
Massachusetts Supreme Judicial Court rejects direct capitalization method for valuing hedge fund partnership interest, finding DCF method is more appropriate, plus tax-affecting.
Monaco v. Stewart
Kentucky court finds personal goodwill value of the husband’s 25% interest in a regional anesthesiology practice to be negligible.
Restaurant Value in Divorce Relies on Mere 2x Multiple of Average Annual EBITDA
Court finds that 2x EBITDA multiple is not too low for restaurant valuation, due to 2008 economic downturn and long hours by husband, a solo proprietor.
May a Divorce Court Presume Noncompete in Valuing a Professional Practice?
Oregon court adopts majority rule, finding it improper to predicate the value of a professional practice on a non-compete.
More Problems With Using Preliminary Valuations in Divorce
Court rejects accountant’s preliminary valuation as lacking sufficient financial support to evidence value of marital business.
Nuveen v. Nuveen
Divorce court prefers BV-certified appraiser over broker for valuation of orthodontic practice, in particular his reliance on intangible asset sale three years prior to divorce.
Salumbides v. Salumbides
Divorce court values medical practice based solely on accounts receivable, largely due to lack of evidence and cooperation from owner-spouse.
In re Marriage of Meek-Duncomb
Divorce court declines to credit “uncertified” business appraisal by CPA who reviewed only tax returns and Excel spreadsheets, without considering business’s assets and debts, sources of revenues and customer relationships.
Pennsylvania Requires Divorce Courts to Consider Tax Affecting a Business
Pennsylvania statute requires family courts to consider tax and other cost ramifications associated with each asset to be divided in divorce.
Expert Valuations of Small Healthcare Company Differ by More Than $3 Million
Husband presents two experts to value wife’s three health care businesses, a forensic accountant to normalize the records and a business valuation expert to assess value under all three approaches.
Divorce Court Rejects ‘Calculation Value’ Offered by CPA Expert
Court declines to accept “calculation of value” by CPA expert in divorce, because it relied on industry rules of thumb and lacked required level of judgment compared to complete valuation.
Contingency Contract Fees Are Separate Consideration From Business Goodwill
West Virginia Supreme Court finds that construction management fees, conditioned on completion of a project, are analogous to attorney contingency fee contracts and subject to same rules of equitable division.
