Court Upholds Inclusion of Premarital Value in Property Distribution
Court says enterprise goodwill valuation of practice was based on expert calculation using excess earnings method and as such is supported by requisite “any” evidence; also, statute allows inclusion of practice’s premarital value in property distribution.
Valuation of key marital asset demands expert opinion
In a Mississippi divorce, the husband's sole-owned fitness training company was the key asset. An accurate valuation was central to achieving an equitable distribution of property, but the parties did not hire experts or even submit much financial information to the trial court.
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.
Court Upholds Inclusion of Premarital Value in Property Distribution
Court says enterprise goodwill valuation of practice was based on expert calculation using excess earnings method and as such is supported by requisite “any” evidence; also, statute allows inclusion of practice’s premarital value in property distribution.
Code & Code
Court says enterprise goodwill valuation of practice was based on expert calculation using excess earnings method and as such is supported by requisite “any” evidence; also, statute allows inclusion of practice’s premarital value in property distribution.
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 ...
Ohio Appeals Court Clarifies Provision on Tax Affecting at Divorce
Appeals court says consideration of tax consequences related to owner-spouse’s business is “too speculative” because owner has no plan to sell in near future; trial court improperly assumed current tax rates and business interests would remain constant.
Comparable Transaction Exposes Error in Court’s Enterprise Goodwill Ruling
Appeals court strikes divorce ruling adopting income-based valuation of enterprise value of owner’s financial services business, valuation conflicts with data from similar transaction that occurred close to valuation date and involved owner-spouse.
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 ...
Service Business Valuation Triggers Double-Dip Rule
New York appellate court finds trial court’s spousal support determination violated double counting rule where expert valued husband’s solely owned engineering company based on an income approach and the business was a service business.
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.
Nieman v. Nieman
Appeals court says consideration of tax consequences related to owner-spouse’s business is “too speculative” because owner has no plan to sell in near future; trial court improperly assumed current tax rates and business interests would remain constant.
In re Marriage of Johnson
Appeals court strikes divorce ruling adopting income-based valuation of enterprise value of owner’s financial services business, valuation conflicts with data from similar transaction that occurred close to valuation date and involved owner-spouse.
Gifford v Gifford
New York appellate court finds trial court’s spousal support determination violated double counting rule where expert valued husband’s solely owned engineering company based on an income approach and the business was a service business.
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.
Court Infers Nature of Goodwill From Nature of Business
Appeals court affirms trial court’s valuation, which implicitly assigned goodwill to business, finding that since the company was not a professional practice it is likely that the company’s, rather than the owner spouse’s, reputation brings in 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.
Court Validates Zero Goodwill for Naturopathic Practice
State high court affirms trial court’s determination that husband’s naturopathic practice had zero goodwill value based solely on husband’s testimony that a similar practice in the area failed to attract a buyer despite being on the market for a year.
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.