Unequal Distribution of Family Business Stock Requires Discounts
Trial court abused its discretion when it assigned to wife stock in closely held company that made her a minority shareholder and when it failed to value the asset at issue; because the in-kind distribution left her with illiquid assets and no control ove ...
Negotiated Formula for Stock Option Price Obviates DLOM Need
Eleventh Circuit upholds Tax Court’s $36.9 million valuation of executive stock option, finding that by using the parties’ negotiated formula for the number of shares equaling $16 million at the date of exercise and declining to apply a marketability disc ...
Ruggiero v. Ruggiero
New York court enlists expert valuators to determine the fair value of a deli, occupying a “unique niche,” following the death of one of two equal owners; the court adopts the defendant expert’s income approach, but rejects the proposed 20% lack of market ...
McCulloch v. McCulloch
Trial court abused its discretion when it assigned to wife stock in closely held company that made her a minority shareholder and when it failed to value the asset at issue; because the in-kind distribution left her with illiquid assets and no control ove ...
Davis v. Commissioner (II)
Eleventh Circuit upholds Tax Court’s $36.9 million valuation of executive stock option, finding that by using the parties’ negotiated formula for the number of shares equaling $16 million at the date of exercise and declining to apply a marketability disc ...
Interdisciplinary Appraisal Cannot Prevent Incomplete Valuation
In valuing husband’s partnership interest in rental-storage business, trial court could consider income-capitalization or cost approach and adopt valuation that included non-controlling (minority) interest discount of 33% based on real estate appraiser’s ...
Estate of Koons v. Commissioner
In determining the fair market value of a revocable trust’s interest in an LLC, the Tax Court adopts the IRS expert’s marketability discount and valuation; he rightly assumed it was reasonably foreseeable at the time of the decedent’s death that the trust ...
Pappas v. Pappas
In valuing husband’s partnership interest in rental-storage business, trial court could consider income capitalization or cost approach and adopt valuation that included non-controlling (minority) interest discount of 33% based on real estate appraiser’s ...
Halliday v. Halliday
Trial court did not overvalue husband’s interests in various businesses since it applied a DLOC whenever the husband did not have a 100% interest in the company and a DLOM that was consistent with expert testimony, state Court of Appeals finds.
Keig v. Keig
State Court of Appeals values husband’s interest in a family agricultural business at $1 million, including a discount for lack of control, and finds lower court’s $250,000 Grace award to spouse to compensate for exclusion of the value of the business fro ...
Divorce Experts Dispute DLOM in Valuing Pharmacy
North Carolina court of appeals affirms application of discount for lack of marketability to value of marital business (hospital pharmacy), as substantiated by the evidence.