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.
Marshall v. Marshall (I)
Appeals court says parties’ agreement is ambiguous as to whether distributions related to husband’s ownership in S corp. are includable in alimony and child support calculation; on remand, trial court must determine what income parties meant when specifying use of pretax income from employment.
Courts Agree Reasonable Compensation Is Sound Method for Calculating Spousal Support in S Corp Context
Appeals court says parties’ agreement is ambiguous as to whether distributions related to husband’s ownership in S corp. are includable in alimony and child support calculation; on remand, trial court must determine what income parties meant when specifying use of pretax income from employment.
Rebuttal Expert May Be Redundant in Offering Only a Critique
Court admits the “before and after” as well as the “yardstick” model developed by the plaintiff’s lost profits expert, leaving questions regarding the underlying assumptions and data for cross-examination at trial, but excludes the defendant’s rebuttal wi ...
Court Tries to Make ‘Heads or Tails’ of Discounts in Divorce
Appellate court affirms “sizeable” discounts for real estate development companies, including ones for bulk sale and carrying costs.
B-K Cypress Log Homes v. Auto-Owners Insurance Company
Court admits the “before and after” as well as the “yardstick” model developed by the plaintiff’s lost profits expert, leaving questions regarding the underlying assumptions and data for cross-examination at trial, but excludes the defendant’s rebuttal wi ...
Barth v. Barth
Appellate court affirms “sizeable” discounts for real estate development companies, including ones for bulk sale and carrying costs.
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 ...
Divorce Court Says SSVS-1 Is Instructive But Not Binding
Divorce court finds AICPA BV standards (SSVS-1) instructive but not binding on valuation of goodwill.
Teams of Experts Help Court and Creditors Value Huge, Bankrupt Homebuilder
Bankruptcy court voids over $600 million in transfers to subsidiaries of bankrupt homebuilders based on teams of expert testimony regarding solvency opinions and lack of reasonably equivalent value.
In re Marriage of Devries
Divorce court finds AICPA BV standards (SSVS-1) instructive but not binding on valuation of goodwill.
In re TOUSA, Inc.
Bankruptcy court voids over $600 million in transfers to subsidiaries of bankrupt homebuilders based on teams of expert testimony regarding solvency opinions and lack of reasonably equivalent value.
Court-Appointed Expert Appeals a Second Time for Malpractice Immunity
Supreme Court of Minnesota reverses lower court’s opinion and extends quasi-judicial immunity to neutral experts appointed under Rule 706 of the applicable rules of evidence.
Peterka v. Dennis (II)
Supreme Court of Minnesota reverses lower court’s opinion and extends quasi-judicial immunity to neutral experts appointed under Rule 706 of the applicable rules of evidence.
Fair Value of Real Estate Company Must Include Marketplace Cost and Risks
Court determines fair value of real estate development company using net asset approach.
Marsh v. Billington Farms, LLC
Court determines fair value of real estate development company using net asset approach.
In re the Marriage of Divin
Steven, who was born in 1968, and Sharon, who was born in 1960, were married in 1991. Two children, Mitchell and Kylie, were born during the marriage. The parties met while both were working at Millard Refrigerated Services. Other than a $10,000 retiremen ...
Wesley B. Binder v. Tamatha E. Thorne-Binder
The Missouri Court of Appeals, Western District, affirmed a lower court’s valuation of a business’s intangible asset. The valuation was based on the testimony of a spouse, who was involved in the business as it accountant. Further, the other spouse’s plea ...
Business’s Intangible Value Based on Involved Spouse’s Testimony
The Missouri Court of Appeals, Western District, affirmed a lower court’s valuation of a business’s intangible asset. The valuation was based on the testimony of a spouse, who was involved in the business as it accountant. Further, the other spouse’s plea ...
Brewer Quality Homes, Inc. v. Commissioner (II)
The U.S. Court of Appeals for the Fifth Circuit affirmed the Tax Court’s determination of reasonable and deductible compensation for an owner of a Louisiana mobile home dealership. The compensation was calculated using RMA data for compensation to gross s ...
State Contracting & Engineering Corp. v. Condotte America, Inc.
The U.S. Court of Appeals for the Federal Circuit affirmed a lower court’s award of reasonable royalties in this method patent infringement case. It found that the plaintiff’s expert properly relied on the actual terms of the Florida Department of Transpo ...
Actual Contract Considered in Hypothetical Negotiations
The U.S. Court of Appeals for the Federal Circuit affirmed a lower court’s award of reasonable royalties in this method patent infringement case. It found that the plaintiff’s expert properly relied on the actual terms of the Florida Department of Transpo ...
Tax Court, Frustrated by Inadequate Data, Inscrutable Analyses, Bases Reasonable Compensation on RMA Ratios
The issue in this case was the reasonableness of compensation paid to the shareholder and primary officer of Brewer Quality Homes Inc. (Brewer).
Brewer Quality Homes, Inc. v. Commissioner (I)
Issue is the extent to which amounts that petitioner paid to shareholder-officer are deductible as reasonable compensation under section 162(a)(1).