Ohio Appeals Court Approves Use of Fair Value Standard in Valuing Farm Entities
Appeals court upholds valuation of minority interest in farm entities based on fair value standard of value; court notes prevailing expert specifically referenced buy-sell agreements that did not contemplate use of discounts in valuing exiting member’s partial interest.
Tate v. Tate
Appeals court upholds valuation of minority interest in farm entities based on fair value standard of value; court notes prevailing expert specifically referenced buy-sell agreements that did not contemplate use of discounts in valuing exiting member’s partial interest.
Telfer v. Telfer
In context of determining appreciation in value, appeals court says trial court did not err when it applied DLOM in valuing partial interests in businesses representing wife’s separate property; DLOM use is within trial court’s discretion and depends on facts of the case.
Tennessee Appeals Court Defers to Trial Court on DLOM Use in Divorce
In context of determining appreciation in value, appeals court says trial court did not err when it applied DLOM in valuing partial interests in businesses representing wife’s separate property; DLOM use is within trial court’s discretion and depends on facts of the case.
Montana Supreme Court Remands for Failure to Assess Tax Implications
High court says trial court erred when it failed to consider tax implications where its final order appears to make sale of family ranch a necessity; evidence suggests there are no other assets with which to buy wife’s shares of ranch corporation at FMV.
Tax Effects Are Relevant to Equitable Distribution Analysis
Reviewing court says in valuing owner spouse’s auto transport business and performing equitable distribution analysis, trial court erred when it refused to consider tax effects of potential sale of business before assigning asset to owner; case remanded.
Math and Logic Problems Mar Court’s Valuation and Division of Assets
Appeals court finds incongruities in trial court’s unreported cash income and profit rate inputs make court’s valuation of timber business meaningless; further, trial court failed to explain reason for equalization payment and arrived at incorrect amount.
Stocker v. Stocker
Trial court did not err in adopting income-based valuation offered by husband’s expert; appeals court calls husband’s attack on his own expert “counterintuitive” where expert explained the value of the company was in its cash flow rather than its assets.
Court Rebuffs Litigant’s Attack on Own Expert’s Income-Based Valuation
Trial court did not err in adopting income-based valuation offered by husband’s expert; appeals court calls husband’s attack on his own expert “counterintuitive” where expert explained the value of the company was in its cash flow rather than its assets.
New Jersey Court’s Inadequate Goodwill Ruling Begets Rebuke and Remand
In a case about lawyer’s equity partner interest in a large firm, appellate court finds prior ruling was grossly deficient; expert testimony suggested the owner spouse’s compensation matched his earning capacity and there was no additional goodwill compon ...
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.
Muszynski v. Muszynski
Trial court adopts valuations of wife’s expert for husband’s 50% interest in waste industry company, finding expert used methods that properly separated out husband’s personal goodwill; court also accepts inclusion of identifiable intangibles shown to belong to company; appeals court affirms.
Court Validates Expert’s Method for Separating Out Owner’s Personal Goodwill
Trial court adopts valuations of wife’s expert for husband’s 50% interest in waste industry company, finding expert used methods that properly separated out husband’s personal goodwill; court also accepts inclusion of identifiable intangibles shown to belong to company; appeals court affirms.
Montana Supreme Court Remands for Failure to Assess Tax Implications
High court says trial court erred when it failed to consider tax implications where its final order appears to make sale of family ranch a necessity; evidence suggests there are no other assets with which to buy wife’s shares of ranch corporation at FMV.
In re Marriage of Broesder
High court says trial court erred when it failed to consider tax implications where its final order appears to make sale of family ranch a necessity; evidence suggests there are no other assets with which to buy wife’s shares of ranch corporation at FMV.
Doyle v. Doyle
Appeals court finds incongruities in trial court’s unreported cash income and profit rate inputs make court’s valuation of timber business meaningless; further, trial court failed to explain reason for equalization payment and arrived at incorrect amount.
Math and Logic Problems Mar Court’s Valuation and Division of Assets
Appeals court finds incongruities in trial court’s unreported cash income and profit rate inputs make court’s valuation of timber business meaningless; further, trial court failed to explain reason for equalization payment and arrived at incorrect amount.
NJ court’s goodwill ruling comes in for harsh criticism from appellate panel
The flashpoint in a protracted New Jersey divorce proceeding was the valuation of the owner spouse's equity partner interest in a large law firm. A critical issue was whether the value of the interest should include an additional amount stemming from the firm's enterprise goodwill. The trial court's decision elicited stinging criticism from the appellate court.
Slutsky v. Slutsky
In a case about lawyer’s equity partner interest in a large firm, appellate court finds prior ruling was grossly deficient; expert testimony suggested the owner spouse’s compensation matched his earning capacity and there was no additional goodwill compon ...
New Jersey Court’s Inadequate Goodwill Ruling Begets Rebuke and Remand
In a case about lawyer’s equity partner interest in a large firm, appellate court finds prior ruling was grossly deficient; expert testimony suggested the owner spouse’s compensation matched his earning capacity and there was no additional goodwill compon ...
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.
NAV Alone Fails to Capture Distributional Interest’s Fair Value
Appellate court affirms fair value determination of distributional interest in family farm based on multiprong valuation; company is not a holding company, and net asset valuation alone fails to capture fair value of dissociating members’ interest.
New Tennessee law streamlines DLOM use in divorce valuation
When and whether to apply a discount for marketability in divorce valuations has been an open question in Tennessee, owing to some confusing court rulings. However, a recent amendment to the Tennessee Code seeks to provide clarity to valuators handling divorce cases in this jurisdiction.
Carney v. Carney
Reviewing court says in valuing owner spouse’s auto transport business and performing equitable distribution analysis, trial court erred when it refused to consider tax effects of potential sale of business before assigning asset to owner; case remanded.