Court Backs Away From Support for Double-Dip Theory
In a divorce case involving dental practice, appeals court says using income stream “as a tool” to value a professional business and then using it “as actual income for a spousal support calculation” does not per se amount to impermissible double dipping.
Bohme v. Bohme
In a divorce case involving dental practice, appeals court says using income stream “as a tool” to value a professional business and then using it “as actual income for a spousal support calculation” does not per se amount to impermissible double dipping.
For DLOM, Court Looks to Signs of Sale of Practice
Court affirms income-based valuation of husband’s dental clinic, including deduction for non-compete attributable to associate, but finds lack of signs that husband intended to sell practice precludes use of DLOM.
Court Questions Idea of Goodwill in Solo Practice Valuation
Appeals court says distinction between professional goodwill and future earnings capacity “evanesces” when valuing solo professional practice; trial court erred in adopting value based on guideline transaction method that considered professional goodwill.
Barnes v. Barnes
Court affirms income-based valuation of husband’s dental clinic, including deduction for non-compete attributable to associate, but finds lack of signs that husband intended to sell practice precludes use of DLOM.
Hartline v. Hartline
Appeals court says distinction between professional goodwill and future earnings capacity “evanesces” when valuing solo professional practice; trial court erred in adopting value based on guideline transaction method that considered professional goodwill.
Excess Earnings Method Best Suited to Value New York City Practice
In divorce case, New York trial court prefers excess earnings over price-to-revenue method to value wife’s dental practice, because the former accounts for the business’s lack of tangible assets—a fact specific to professional offices in New York where re ...
Expert’s Anemic Analysis Imperils Damage Calculation
Appellate court affirms pretrial decision to strike economist expert’s opinion as to business loss under Rule 702; although the trial court erred when it found the expert unqualified to perform a business valuation, it was right to find his calculations ...
A.C. v. J.O.
In divorce case, New York trial court prefers excess earnings over price-to-revenue method to value wife’s dental practice, because the former accounts for the business’s lack of tangible assets—a fact specific to professional offices in New York where re ...
Wallace v. Kalniz
Appellate court affirms pretrial decision to strike economist expert’s opinion as to business loss under Rule 702; although the trial court erred when it found the expert unqualified to perform a business valuation, it was right to find his calculations ...
Parties Assume Risk of Failing to Value Professional Goodwill
Appellate court affirms trial court valuation of dental practice that included “substantial” goodwill value but did not apportion it between personal and business goodwill, noting that the appealing party bears the burden at trial to establish this amount ...
In the Matter of Cottrell
Appellate court affirms trial court valuation of dental practice that included “substantial” goodwill value but did not apportion it between personal and business goodwill, noting that the appealing party bears the burden at trial to establish this amount ...
Massachusetts Courts Leaning Toward ‘Equitable’ Solution to the Double Dip
Massachusetts Court of Appeals acknowledge trend in that state to find an equitable solution to the problem of the double dip in divorce, involving making separate findings regarding the income of the owner-spouse from the business and the income/assets o ...
Date of Valuation for Divorce Not as Critical as Its ‘Truth’
Court of Appeals confirms trial court’s reliance on a valuation performed closer to date of petition (rather than date of decree), finding a variety of factors in support, including spouse’s dissipation of funds from the sole proprietorship.
Kowalska-Davis v. Davis
Massachusetts Court of Appeals acknowledge trend in that state to find an equitable solution to the problem of the double dip in divorce, involving making separate findings regarding the income of the owner-spouse from the business and the income/assets o ...
Gaskill v. Robbins (III)
Court of Appeals confirms trial court’s reliance on a valuation performed closer to date of petition (rather than date of decree), finding a variety of factors in support, including spouse’s dissipation of funds from the sole proprietorship.
Dental Practice Does Not Have Goodwill
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.”
Court Include Personal Goodwill Value When Neither Expert Included Its Value
Trial court did not err in valuing dental practice at an amount less than the husband’s prior buy-in value; and did not improperly include personal goodwill value when neither expert included its value ...
Noncompete Transfers Professional Goodwill to Practice for Tax Purposes
9th circuit upholds finding that a noncompetition agreement effectively conveyed a dentist’s personal goodwill to his C corporation, such that it became the corporation’s asset for income tax purposes.
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."
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 ...
Howard v. United States (II)
Ninth circuit upholds finding that a non-competition agreement effectively conveyed a dentist’s personal goodwill to his C corporation, such that it became the corporation’s asset for income tax purposes.
O'Donnell-States v. States
Trial court did not err in valuing dental practice at an amount less than the husband's prior buy-in value; and did not improperly include personal goodwill value when neither expert included its value ...
McReath v. McReath (II)
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 Bruns
Divorce court confirms value of dental practice, excluding goodwill, is midway between a broker’s value and a BV expert’s.