Texas Divorce Court Gives Doctors Rx for Limiting Practice Value to Buy-Sell
Texas court holds unsigned buy-sell agreement controls value of husband’s medical practice, a privately held professional association, in divorce.
Medical Practice Valuations: Three Current Divorce Cases Spotlight Difficult Issues
Three recent decisions highlight the constant challenges of appraising physician and dental practices in divorce, everything from doctors who won’t disclose their finances to those who insist their opinions determine value.
Mandell v. Mandell
Texas court holds unsigned buy-sell agreement controls value of husband’s medical practice, a privately held professional association, in divorce.
Garcia v. Garcia
Divorce court finds restrictive shareholder agreement not binding on valuation of medical practice, although question of discounts due to restrictions depends on particular facts of the cases.
Flawed Medical Practice Determination Shows Difficulties of Trial Process
In the Brown divorce, the husband owned an OB/GYN practice where the wife worked part-time to help with accounting. At trial, only the wife presented expert testimony from a CPA with experience appraising businesses and medical practices. He analyzed five years of accounts receivable, concluding the practice was worth nearly $98,000. The husband testified that the receivables were only 10% collectible, however, essentially placing a value on his practice of just under $9,800. The wife also testified that, as part of ...
More Thorough Medical Practice Valuation Includes Goodwill and Other Assets
Trial court finds medical practice valuation that includes goodwill more persuasive, when the firm had been in business more than 50 years and had three locations.
King v. King
Kentucky appellate court remands case for consideration of enterprise versus personal goodwill components in a medical practice, pursuant to just-passed case that conforms with majority rule on the division of professional practice goodwill in divorce.
Doctor Tries to Avoid Divorce Valuation of Practice in Shareholder Dissolution Suit
Court and expert witnesses debate meaning of “book value” of medical practice in buy-sell provision and whether or not the term is net of liabilities.
Brown v. Brown
Trial court’s determination of medical practice value in divorce fails for lack of sufficient evidentiary findings ...
Pearlstein v. Pearlstein
Trial court finds medical practice valuation that includes goodwill more persuasive, when the firm had been in business more than 50 years and had three locations.
Gremillion v. Nashville Gastrointestinal
Court and expert witnesses debate meaning of “book value” of medical practice in buy-sell provision, and whether or not the term is net of liabilities.
Valuation Challenged on Benchmark Data, Goodwill, and Productivity
Challenge to medical practice valuation focuses on physician productivity, goodwill, benchmark data, and normalized earnings adjustment.
Tax Court Examines Charitable Deduction
Tax Court denies charitable deductions for donation of intangible goodwill from taxpayers’ medical practices to newly formed healthcare corporation.
Pellom v. Pellom
Challenge to medical practice valuation focuses on physician productivity, goodwill, benchmark data, and normalized earnings adjustment.
Tax Court Rejects Appraisal of Donated Stock for Incorrect Premise of Value
Tax Court approves 64% combined discounts (advocated by IRS) for valuing medical service corporation slated for conversion to a nonprofit.
Bergquist v. Commissioner of Internal Revenue
Tax Court approves 64% combined discounts (advocated by IRS) for valuing medical service corporation slated for conversion to a non-profit.
Derby v. Commissioner
Tax Court denies charitable deductions for donation of intangible goodwill from taxpayers’ medical practices to newly formed healthcare corporation.
Divorce Court Rules Wife Lacks Standing to Contest Buy-Sell Value
Court accepts buy-sell value for husband’s interest in a healthcare partnership where wife fails to offer expert business appraisal.
Court Erred by Excluding Value of Noncompete From Enterprise Goodwill
Trial court erred by excluding the value of a non-compete attributable to the institutional goodwill of surgical practice.
Nevarez v. Nevarez
Court accepts buy-sell value for husband’s interest in a healthcare partnership where wife fails to offer expert business appraisal.
In re Marriage of Baker
Trial court erred by excluding the value of a noncompete attributable to the institutional goodwill of surgical practice.
Personal Goodwill Excluded From Value of Professional Practice
The Indiana Supreme Court ruled that the value of the enterprise goodwill of the husband's medical practice may be considered when determining the value of the practice for the purposes of a divorce. However, the court also ruled that the personal goodwi ...
Fraud-Infected Hospital Merits ‘Tax Affecting,’ High Risk Premium, and More
Solvency valuation of fraud-riddled hospital warrants tax affecting, high company-specific risk, and more from Illinois bankruptcy court.
Three New Cases Examine Valuation of Goodwill In Medical Practices
Goodwill valuation continues to cause legal headaches, as three more cases this month (in addition to the Stewart decision ) dissect the issue, all in the context of medical practices. The first considers applying the rule regarding valuing goodwill in m ...
Idaho Supreme Court Considers Distinguishing Personal and Enterprise Goodwill
Idaho declines to make the distinction between enterprise and personal goodwill in valuing a professional practice in divorce, holding all goodwill is marital property.