Papin v. Papin
High court upholds classification and valuation of husband’s investment management business, noting business consists of book of business, which can exist without owner, and owner’s skills and expertise, which are his separate property; proceeds from sale of book of business are community property.
Trajectory of Owner’s Investment Management Business Raises Characterization and Valuation Issues
A complex divorce case in front of the Idaho Supreme Court featuring an investment management business that the husband had set up before and sold during the marriage raised noteworthy issues about the nature of the business and the characterization and valuation of its various components (book of business vs. owner’s skills). A related flashpoint was whether the nonowner spouse was entitled to any appreciation (enhancement) in the value of the business that occurred ...
Louisiana Courts Wrestle With Treatment of Debt in Community Property Valuation
In community property partition case, appeals court upholds valuation of community-owned firm; firm is not responsible for debts of an acquired company that are personally guaranteed by husband but not by express corporate contract; valuation must not subtract debt amount.
Henry v. Henry
In community property partition case, appeals court upholds valuation of community-owned firm; firm is not responsible for debts of an acquired company that are personally guaranteed by husband but not by express corporate contract; valuation must not subtract debt amount.
Arizona Court Says Owner’s Goodwill in Restaurants Represents Community Asset
Appeals court affirms trial court’s decision to give wife portion of value of goodwill in two restaurants husband set up with new partner during separation, where restaurants carried husband’s name and featured recipes he had developed during the marriage; goodwill is a community asset.
Jimenez v. Jimenez
Appeals court affirms trial court’s decision to give wife portion of value of goodwill in two restaurants husband set up with new partner during separation, where restaurants carried husband’s name and featured recipes he had developed during the marriage; goodwill is a community asset.
Vedros v. Vedros
Court says discounting for lack of marketability of minority interest in home healthcare agency, operating as an S corporation, is appropriate where LLC agreement included transfer restrictions and partners were not planning to buy out owner spouse.
Facts Support Discounts in Valuation of Small Healthcare Agency
Court says discounting for lack of marketability of minority interest in home healthcare agency, operating as an S corporation, is appropriate where LLC agreement included transfer restrictions and partners were not planning to buy out owner spouse.
Court Highlights Role of Community Labor in Goodwill Analysis
Appeals court says record supports nonowner spouse’s claim to a share of owner’s CPA’s practice; business changed from separate to community property, and most of its value consisted of professional goodwill, which was created by community labor.
WA court’s goodwill analysis looks a lot like appreciation analysis
A recent Washington state divorce case included a noteworthy discussion of goodwill where the owner spouse’s business arguably was separate property. Divorce experts will notice that the court’s goodwill analysis has much in common with an appreciation analysis.
In re Marriage of Vandal
Appeals court says record supports nonowner spouse’s claim to a share of owner’s CPA’s practice; business changed from separate to community property, and most of its value consisted of professional goodwill, which was created by community labor.
Court Highlights Role of Community Labor in Goodwill Analysis
Appeals court says record supports nonowner spouse’s claim to a share of owner’s CPA’s practice; business changed from separate to community property, and most of its value consisted of professional goodwill, which was created by community labor.
Court Treats Outpatient Surgery Center as Extension of Physician’s Practice
Court says deducting personal goodwill from valuation of physician’s interest in outpatient surgical center is appropriate even if physician was not an employee of center; entity’s income and total value depended on its physician members’ patient base.
Bulloch v. Bulloch
Court says deducting personal goodwill from valuation of physician’s interest in outpatient surgical center is appropriate even if physician was not an employee of center; entity’s income and total value depended on its physician members’ patient base.
Court Treats Outpatient Surgery Center as Extension of Physician’s Practice
Court says deducting personal goodwill from valuation of physician’s interest in outpatient surgical center is appropriate even if physician was not an employee of center; entity’s income and total value depended on its physician members’ patient base.
No Automatic Bar to Minority Discount in Divorce Cases
Appeals court says state law does not bar use of minority share discount in divorce cases and declines to impose a bright-line rule; rather, the trial court has to consider interest holder’s level of control and likelihood of sale before use of discount.
Court Affirms Rightness of Expert’s ‘Marital Value’ Calculation
Court upholds expert’s idiosyncratic valuation approach based on ascertaining “marital value” of community’s grocery stores as opposed to stores’ “investment value”; since the stores were not sold, valuation properly captured their value to owner spouse.
Schickner v. Schickner
Appeals court says state law does not bar use of minority share discount in divorce cases and declines to impose a bright-line rule; rather, the trial court has to consider interest holder’s level of control and likelihood of sale before use of discount.
In re Honer
Court upholds expert’s idiosyncratic valuation approach based on ascertaining “marital value” of community’s grocery stores as opposed to stores’ “investment value”; since the stores were not sold, valuation properly captured their value to owner spouse.
Murky Goodwill Testimony Makes Partner Agreement Best Indicator of Value
Trial court was justified in disregarding any commercial goodwill in husband’s interest in a professional practice and relying on partnership agreement, Texas appeals court finds, where goodwill is not accessible and expert testimony as to its existence a ...
Hill v. Hill
Trial court was justified in disregarding any commercial goodwill in husband’s interest in a professional practice and relying on partnership agreement, Texas appeals court finds, where goodwill is not accessible and expert testimony as to its existence a ...
Community Deserves Profits From Separate Business Investment
Appellate court affirms trial court’s decision to apportion most of the stock sale proceeds the husband reaped during marriage in connection with a company he set up before marriage to the community under Pereira, finding that during marriage, he became t ...
Goldfarb v. Yelton
Appellate court affirms trial court’s decision to apportion most of the stock sale proceeds the husband reaped during marriage in connection with a company he set up before marriage to the community under Pereira, finding that during marriage, he became t ...