Court Affirms No DLOM in Valuation of a Control Interest, Wife’s Legal Fees Are Not Part of Marital Estate
In this marital dissolution case, the Indiana Appellate Court affirms the trial court’s decision that no DLOM is allowed in the valuation of a control interest. The husband’s expert failed to provide sufficient evidence that a DLOM was appropriate at the level the wife’s expert claimed. The court also affirmed the decision that $50,000 of legal and expert fees the husband paid in advance is not part of the marital estate and thus not subject to offset.
Maginnis v. Maginnis
In this unpublished opinion, the Kentucky Appellate Court remanded the decision as to the value of the husband’s business for, among other things, the Family Court’s failure to consider an apportionment of goodwill between enterprise and personal goodwill. It also remanded for a reconsideration of the maintenance award to the wife since that award is based in part on the value of the business and the income of the husband.
Trial Court Fails to Consider Apportionment of Goodwill in a Marital Dissolution Case
In this unpublished opinion, the Kentucky Appellate Court remanded the decision as to the value of the husband’s business for, among other things, the Family Court’s failure to consider an apportionment of goodwill between enterprise and personal goodwill. It also remanded for a reconsideration of the maintenance award to the wife since that award is based in part on the value of the business and the income of the husband.
Connecticut Supreme Court clarifies double-counting rule
In a recent decision, the Connecticut Supreme Court clarified this jurisdiction approach to double counting (or double dipping).
Personal v. Enterprise Goodwill in Florida Divorce Cases: What the Appellate Courts Say
In the wake of the recent King case, this is an analysis of marital dissolution case law from the Florida Supreme Court and the five District Courts of Appeal (DCA) of Florida that relates to the valuation of personal and enterprise goodwill in that state.
Oudheusden v. Oudheusden (II)
In this divorce case, the Connecticut Supreme Court, overturning the appellate court, clarifies that awarding the nonowner spouse part of the value of the owner spouse’s businesses and basing alimony on income generated from the businesses is not impermissible double counting (double dipping).
Connecticut Supreme Court Clarifies Double Counting Rule in Divorce Cases Involving Valuation of a Business and Determination of Alimony
In this divorce case, the Connecticut Supreme Court, overturning the appellate court, clarifies that awarding the nonowner spouse part of the value of the owner spouse’s businesses and basing alimony on income generated from the businesses is not impermissible double counting (double dipping).
Goodwill analysis ignoring specifics crumbles on appeal
A divorce expert’s failure to link the facts related to a successful insurance company to his personal goodwill analysis was one of the reasons a Florida appeals court recently overturned the trial court’s valuation findings, which, the reviewing court said, were not based on competent, substantial evidence.
King v. King
This divorce case appeal deals with three primary issues: the determination of the value of insurance agency marital asset, the determination of the amount of personal goodwill attaching to the insurance agency, and the appropriate amount of alimony. The court remands the value of the business as it relates to the exclusion by the trial court of the liabilities the business owed, remands as to the appropriate amount of personal goodwill, and remands as to the erroneous level of income of the husband for determination of alimony.
Florida Trial Court’s Valuation Findings, Including Personal Goodwill Determination, Do Not Hold Up Under Appeals Court Scrutiny
This divorce case appeal deals with three primary issues: the determination of the value of insurance agency marital asset, the determination of the amount of personal goodwill attaching to the insurance agency, and the appropriate amount of alimony. The court remands the value of the business as it relates to the exclusion by the trial court of the liabilities the business owed, remands as to the appropriate amount of personal goodwill, and remands as to the erroneous level of income of the husband for determination of alimony.
Sink or Swim: The New World of Virtual Testimony
Most people do not realize how different it is appearing in court through virtual technology compared to being there in person. Valuation experts who have not yet had the “pleasure” of attending virtual hearings may be concerned about it—and rightly so. In person, you are in control of how you look and sound, but, when you are online, you are at the mercy of technology, which can make you look good—or very bad. Fortunately, at the recent AAML/BVR Virtual Divorce Conference, valuation experts and attorneys shared their experiences and tips for testifying in a virtual world.
Delaware court weighs in on goodwill in sole proprietorships
A recent divorce case out of Delaware is significant for addressing the treatment of goodwill where the business is a sole proprietorship.
Business Valuation Update Yearbook, 2021 Edition
January 2021 Hardcover, PDF
BVR (editor)
Business Valuation Resources, LLC
Top 10 Tips From the 2020 AAML/BV Virtual Divorce Conference
Family law attorneys, valuation professionals, and industry experts connected virtually this fall to share advice during the Virtual Divorce Conference brought to you by the American Academy of Matrimonial Lawyers (AAML) and Business Valuation Resources (BVR). Here are the top 10 key takeaways from the many great sessions with top thought leaders in the profession.
BVR featured in ABA podcast on divorce valuations
BVWire editors Sylvia Golden and Andy Dzamba joined moderator Tom Urquhart at the American Bar Association on a podcast to discuss Business Valuation in Divorce: A Case Compendium, a book co-published by BVR and the ABA.
Parties’ agreement complicates spousal support calculation in S corp context
Instead of facilitating a resolution, a separation agreement between the divorcing spouses led to a protracted lawsuit.
Attorneys and Valuers Link Up at AAML/BVR Virtual Divorce Conference
Coverage of several sessions that include tips on managing client expectations in uncertain times and the new “abnormal” with respect to executive compensation.
New book on Colorado valuations for family lawyers and judges
The Financial Expert Guide for Family Law Judges and Attorneys, Colorado edition, goes a long way toward educating triers of fact, attorneys, and experts on the key valuation cases and legal principles in Colorado.
How to value a business and settle a divorce during COVID-19; divorce professionals share tips
How do you resolve a divorce case during COVID-19, when many businesses in all kinds of industries are coping with significant losses and continuing uncertainty over future performance? This was the topic of an excellent panel discussion that was part of the recent virtual AAML/BVR divorce conference.
A.A. v. B.A.
In valuing owner’s financial advisory business organized as sole proprietorship, court rejects idea that prior case law on goodwill in solely owned business precludes assigning goodwill to business; court says commissions earned during marriage but received post-separation or post-divorce are marital.
Delaware Court Revisits Issue of Goodwill in Sole Proprietorship
In valuing owner’s financial advisory business organized as sole proprietorship, court rejects idea that prior case law on goodwill in solely owned business precludes assigning goodwill to business; court says commissions earned during marriage but received post-separation or post-divorce are marital.
Marshall v. Marshall (II)
On second review, appeals court says trial court satisfied task on remand; latter’s use of reasonable compensation calculation to establish income for alimony and child support purposes was in the spirit of parties’ agreement and was based on “entirely credible” testimony by husband’s BV expert.
Courts Agree Reasonable Compensation Is Sound Method for Calculating Spousal Support in S Corp Context
On second review, appeals court says trial court satisfied task on remand; latter’s use of reasonable compensation calculation to establish income for alimony and child support purposes was in the spirit of parties’ agreement and was based on “entirely credible” testimony by husband’s BV expert.
New edition released of the BV in Divorce Compendium
The most current summary and analysis of U.S. legal decisions involving business valuation and divorce is in the just-released fifth edition of BVR’s Business Valuation in Divorce Case Law Compendium.
Tips on how to help settle a divorce during COVID-19
How do you resolve a divorce case during COVID-19, when many businesses in all kinds of industries are coping with significant losses and continuing uncertainty over future performance?