Appreciation Case Highlights Contribution by Nonowner Spouse
Increase in value of owner’s minority interests in companies was due to owner’s efforts, which were “facilitated” by nonowner’s work in home; appreciation was active and marital property; no error in awarding nonowner half of profits from sale of assets.
Allison v. Allison
Increase in value of owner’s minority interests in companies was due to owner’s efforts, which were “facilitated” by nonowner’s work in home; appreciation was active and marital property; no error in awarding nonowner half of profits from sale of assets.
Active-passive categorization skews appreciation analysis, court finds
Valuators may think they know all there’s to know about quantifying the appreciation of nonmarital property by using the active versus passive framework. Think again. A recent Florida divorce case illustrates that the premature categorization of assets may lead to an improper valuation.
Bair v. Bair
Court says appreciation analysis suffers from improper use of active/passive framework; valuation of company must include all assets, including real estate whose value dropped, where marital labor contributed to overall appreciation of separate property.
Improper Use of Active/Passive Framework Skewers Valuation
Court says appreciation analysis suffers from improper use of active/passive framework; valuation of company must include all assets, including real estate whose value dropped, where marital labor contributed to overall appreciation of separate property.
Divided Court Addresses Issue of Appreciation of Gifted Property
Divided appeals court upholds decision not to award any part of appreciation in separate gifted stock to nonowner spouse; dissent says length of marriage and contributions by wife, regardless of their nature, support equal division of stock appreciation.
Court Digs Through Appreciation Issues in Complex Divorce Case
Appellate panel affirms majority of rulings as to nonowner spouse’s right to appreciation of premarital and gifted property; lower court correctly determined passive and active immune assets in affecting equitable distribution of business assets.
Kminek-Nierenberg v. Kenneth Nierenberg
Appellate panel affirms majority of rulings as to nonowner spouse’s right to appreciation of premarital and gifted property; lower court correctly determined passive and active immune assets in affecting equitable distribution of business assets.
Court Digs Through Appreciation Issues in Complex Divorce Case
Appellate panel affirms majority of rulings as to nonowner spouse’s right to appreciation of premarital and gifted property; lower court correctly determined passive and active immune assets in affecting equitable distribution of business assets.
Divided Court Addresses Issue of Appreciation of Gifted Property
Divided appeals court upholds decision not to award any part of appreciation in separate gifted stock to nonowner spouse; dissent says length of marriage and contributions by wife, regardless of their nature, support equal division of stock appreciation.
In re Marriage of Kerkhoff
Divided appeals court upholds decision not to award any part of appreciation in separate gifted stock to nonowner spouse; dissent says length of marriage and contributions by wife, regardless of their nature, support equal division of stock appreciation.
Mann v. Mann
In appreciation of value case, court agrees with wife’s expert that calculation of marital portion of wife’s interest in family business requires quantification of personal goodwill attributable to wife based on value of noncompete to potential buyer in arm’s-length transaction.
Court Adopts Appreciation Analysis That Places ‘Specific Dollar Value’ on Goodwill
In appreciation of value case, court agrees with wife’s expert that calculation of marital portion of wife’s interest in family business requires quantification of personal goodwill attributable to wife based on value of noncompete to potential buyer in arm’s-length transaction.
In Controversial Move, High Court Strikes Active Appreciation Rule
State high court says plain language of property distribution statute does not permit reclassification of nonmarital property as marital property under active appreciation doctrine; court invalidates doctrine and overrules body of case law applying it.
Court Rejects Bright-Line Rule for Valuing Appreciation of Nonmarital Assets
Marital estate only has claim to increased value of stock from company for which owning spouse works if nonowning spouse can show owner’s active effort “to move the appreciation value from the nonmarital category to the marital one,” appeals court affirms ...
Lay Testimony About Offer to Buy Represents Admissible Valuation Evidence
Appeals court says nonexpert testimony on a real-world offer to buy owner-spouse’s company was relevant and, therefore, admissible because it provided valuation evidence based on market approach; court remands for rehearing on all valuation testimony.
Florida court explores scope of active/passive appreciation
A Florida appeals court examines the issue of whether the increased value of stock from a company for which the owning spouse works can be a marital asset and subject to distribution.
Industry-specific empirical support for passive appreciation
A survey is open for respondents to indicate which industries they would like to see analyzed for economic causal factors and their elasticities in order to better determine passive appreciation in business assets in a divorce context. The resulting analyses will be published.
Moore v. Moore
State high court says plain language of property distribution statute does not permit reclassification of nonmarital property as marital property under active appreciation doctrine; court invalidates doctrine and overrules body of case law applying it.
Witt-Bahls v. Bahls
Marital estate only has claim to increased value of stock from company for which owning spouse works if nonowning spouse can show owner’s active effort “to move the appreciation value from the nonmarital category to the marital one,” appeals court affirms ...
Berger v. Berger
Appeals court says nonexpert testimony on a real-world offer to buy owner-spouse’s company was relevant and, therefore, admissible because it provided valuation evidence based on market approach; court remands for rehearing on all valuation testimony.
South Carolina Supreme Court Makes New Law on Business Goodwill
In a first, state high court “cautiously” decides enterprise goodwill is marital property subject to equitable division and affirms that personal goodwill is not; court rejects claim that only professionals can develop personal goodwill in a business.
Different Ways to Find No Claim to Enhanced Value of Nonmarital Asset
Appeals court says trial court erred in interpreting prenuptial agreement but reached correct result when it rejected wife’s claim to enhanced value of husband’s separate interest in car dealership by ruling appreciation in value was passive, not active.
Moore v. Moore
In a first, state high court “cautiously” decides enterprise goodwill is marital property subject to equitable division and affirms that personal goodwill is not; court rejects claim that only professionals can develop personal goodwill in a business.
Berg v. Young
Appeals court says trial court erred in interpreting prenuptial agreement but reached correct result when it rejected wife’s claim to enhanced value of husband’s separate interest in car dealership by ruling appreciation in value was passive, not active.