Save the date! 2019 AAML/BVR National Divorce Conference
BVR has joined forces with the American Academy of Matrimonial Lawyers (AAML) to present the National Divorce Conference in Las Vegas May 8-10, 2019.
Arkansas court clarifies law on personal goodwill in a nonprofessional business
In divorce cases, Arkansas has followed the rule that enterprise goodwill is marital property but personal goodwill is not.
Tenn. Appeals Court says DLOM in divorce appropriate under facts of case
A recent Tennessee appeals court decision found that the trial court presiding over a drawn-out divorce had discretion to apply a marketability discount when it valued the owner-spouse’s interest in two companies in 2016.
Tennessee appeals court allows slight DLOM in divorce case
Valuators working on divorce cases in Tennessee know that the jurisprudence on the use of the marketability discount has been nebulous.
Atherton v. Atherton
Arkansas Court of Appeals rejects claim by owner of nonprofessional business that any value in business represents personal goodwill attributable to him; court says concept of personal goodwill has not been extended to nonprofessional business “such as the one involved here.”
Arkansas Court Clarifies What Sort of Businesses Can Have Personal Goodwill
Arkansas Court of Appeals rejects claim by owner of nonprofessional business that any value in business represents personal goodwill attributable to him; court says concept of personal goodwill has not been extended to nonprofessional business “such as the one involved here.”
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.
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.
Michigan court explains treatment of S corp’s retained earnings in divorce
The overarching issue in a recent Michigan divorce case was appreciation. Did the nonowner spouse (wife) have a right to a portion of the increase in value of her husband’s separate property, an S corporation? A related issue, and one that posed a question of first impression in Michigan, was how to treat the company’s retained earnings.
Goodman v. Goodman
Appeals court upholds trial court’s finding of enterprise goodwill, finding husband’s habit of periodically placing business assets in his children’s names as well as wife’s significant involvement in the business indicate business was “transferable.”
Owner’s Problematic Business Practices Support Finding of Enterprise Goodwill
Appeals court upholds trial court’s finding of enterprise goodwill, finding husband’s habit of periodically placing business assets in his children’s names as well as wife’s significant involvement in the business indicate business was “transferable.”
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.
Finch v. Campbell
In partnership dispute, appeals court affirms trial court’s “equitable discretion” not to allow plaintiff to offer valuation of his law firm interest that contradicts valuation plaintiff offered for same asset in his divorce trial, benefitting each time.
Court Finds Plaintiff’s Contradictory Valuation of Law Firm Interest ‘Inequitable’
In partnership dispute, appeals court affirms trial court’s “equitable discretion” not to allow plaintiff to offer valuation of his law firm interest that contradicts valuation plaintiff offered for same asset in his divorce trial, benefitting each time.
Nebraska Supreme Court Adopts Majority View on Appreciation
State Supreme Court adopts active appreciation rule, aligning itself with majority of jurisdiction that finds appreciation of nonmarital asset is marital property to the extent marital efforts caused it, i.e., the owner or nonowner spouse or both.
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.
Stephens v. Stephens
State Supreme Court adopts active appreciation rule, aligning itself with majority of jurisdiction that finds appreciation of nonmarital asset is marital property to the extent marital efforts caused it, i.e., the owner or nonowner spouse or both.
Nebraska Supreme Court Adopts Majority View on Appreciation
State Supreme Court adopts active appreciation rule, aligning itself with majority of jurisdiction that finds appreciation of nonmarital asset is marital property to the extent marital efforts caused it, i.e., the owner or nonowner spouse or both.
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.
Tenn. appeals court muddies the waters regarding use of DLOM in divorce valuation
So much for clarity. A recent Tennessee appeals court decision hinged on the issue of whether a marketability discount was appropriate in the valuation of the husband’s interests in three real estate development partnerships. In reviewing the trial court’s analysis, the appeals court suggested that the lower court misunderstood the principle behind DLOM but ultimately upheld the lower court’s findings. The resulting decision leaves valuators in a pickle as to when to apply the discount and at what rate.
Florida court resists call for bright-line rule on active-passive appreciation
In this age of entrepreneurship, valuators working on divorce cases often run into the issue of active and passive appreciation. But this issue not only comes up in the context of one spouse's ownership of a business that qualifies as separate property, as a recent Florida appeals court ruling shows. The case involved the husband's separate ownership of stock in a company for which he worked and the stock's substantial appreciation in value during the marriage. The wife asked for a rule "that all appreciation of the stock of a company for which a spouse works is a marital asset."